Bank Reconciliation Statement Problems

Locate bank reconciliation problems as soon as your bank statement arrives.

If you are having problems reconciling your checkbook to your monthly bank statement, you must compare each cash transaction recorded in your checkbook against the bank statement to locate and immediately correct or record any differences.

Bank Statement

Your bank statement details your banking transactions during the statement period.

Your bank statement reflects cash debit deductions to your account for items such as service fees, return items and various bank charges that must be recorded and deducted from your check register. On the other hand, your bank statement might reflect credits for cash collection items received and unrecorded deposits that must be listed and added to your checkbook balance.

Checkbook

Items that have not yet cleared on your bank statement must be closely monitored.

Your bank statement does not reflect transactions posted to your checkbook register on the same day due to timing differences. For example, checks that you write to third parties do not appear on your bank statement until they are transacted by the payee of the checks. Also, deposits listed in your check register will not appear on your statement until they have been processed.

Adjustments

Adjustments must be immediately made to your bank before money is lost.

You must update your checkbook register for all legitimate adjustments that appear on your bank statement. On the other hand, unexplained or unauthorized adjustments must be immediately reported to your bank for review and correction.

References

• Start Up Biz Hub: How to do Bank Reconciliation
• Future Accountant: Cash and Bank Accounts
• MCTA Treasurer's Manual: Reconciliation

Resources

• Principles of Accounting: Cash and Highly Liquid Investments