Reviewing the monthly bank reconciliations is part of a complete set of internal controls for your organization’s financial process and will be an item your auditors will look for. However, for those of you new to this task or for those who simply want a quick break-down of the process, read on… I will try to simplify it for you in 5 easy steps.
A bank reconciliation report is fundamentally a comparison of your bank account balance according to the bank versus the bank account balance according to your accounting records. You must therefore request the following three documents to do a proper review:
- Bank statement (from the bank) for the corresponding month.
- Reconciliation Report for the corresponding month (this is generated from the accounting software).
- Balance Sheet or Trial Balance for the corresponding month (also generated from the accounting software). Continue reading “5 Steps to Approving a Bank Reconciliation” »