Business

7 Steps to Audit Bank Reconciliation Statements

Published

5 years ago

December 27, 2019

Asripasan

Content

First, check your two cash balances
Reasons for Difference Between Bank Statement and Company’s Accounting Record
Bank Reconciliation Process Flow
Introduction to Bank Reconciliation
Who should perform bank reconciliations?

How to prepare bank account reconciliation

In that case, both unadjusted balances will need adjustments to arrive at the true, corrected, adjusted cash balance. For instance, if you haven’t reconciled your bank statements in six months, you’ll need to go back and check six months’ worth of line items. Whether this is a smart decision depends on the volume of transactions and your level of patience. If you use the accrual system of accounting, you might “debit” your cash account when you finish a project and the client says “the cheque is going in the mail today, I promise! Then when you do your bank reconciliation a month later, you realize that cheque never came, and the money isn’t in your books . Since the adjusted balance for both the bank book and bank statement is $400, it means there are no extra items that need to be reconciled.

Finally, the balances are compared again, at which point, both should be equal. As apparent, there are differences between the two statements.

Table of Contents

First, check your two cash balances

Match transactions from your bank statement and general ledger account. Each transaction in one document should have a corresponding transaction in the other. Check the final figures on your bank reconciliation document against your general ledger totals and ensure they match. Compare the final figures on your reconciliation document to that account’s bank statement. Payments are automatically reconciled with the expenses charged by the user – it is easy, simple, and automated.

How To Do A Bank Reconciliation: Step By Step – Forbes

How To Do A Bank Reconciliation: Step By Step.

Posted: Mon, 02 Aug 2021 07:00:00 GMT [source]

Also, check for any miscellaneous deposits that haven’t been accounted for. Once you’ve located these items, you’ll need to adjust the G/L balance to reflect them. Common causes of discrepancies between bank statements and business records include outstanding checks, deposits in transit, interest income, and https://accounting-services.net/ bank service and overdraft fees. In the past, it was common for a company to prepare the bank reconciliation after receiving the monthly bank statement and before issuing the company’s balance sheets. However, with today’s online banking a company can prepare a bank reconciliation throughout the month .

Reasons for Difference Between Bank Statement and Company’s Accounting Record

It helps you keep a clean record of all of your bank transactions. When you reconcile your account, you can be assured there are no missing payments or transactions from your personal ledger, helping you avoid any miscalculations or overdrafts later on. When it comes to optimizing accounts payable management, reconciling your bank account is critical to staying on track. If you don’t ensure the business and bank are on the same page, tiny mistakes can snowball into huge problems.

How to prepare bank account reconciliation

This allows the company to verify its checking account balance more frequently and to make any necessary corrections much sooner. Every check amount on the bank statement must be compared to the check How to prepare bank account reconciliation amounts in the company’s general ledger Cash account. Any differences, such as the company’s outstanding checks and errors, will become part of the adjustments listed on the bank reconciliation.

Bank Reconciliation Process Flow

For example, you may have accepted checks on the closing date of the bank statement, or a check you recently wrote hasn’t been cleared. While accounting software apps that offer bank connectivity can expedite the reconciliation process, they should not replace performing your own monthly bank reconciliation. Many bank statements will separately summarize deposits and withdrawals as does the summary at the top of the QuickBooks reconciliation screen. First, try to match total bank deposits to total QuickBooks deposits by reviewing only deposit transactions. Then, match total withdrawals from QuickBooks and the bank statement. The deposits on your bank statement will likely have multiple checks grouped into a single transaction, particularly if you deposited the checks directly to your bank. When you make multiple deposits in one go, your bank will record them as a single deposit, which shows up in your bank statement.

How to prepare bank account reconciliation

It summarizes the beginning and ending balances, and it lists which transactions were cleared and which were left uncleared when you reconciled. This report is useful if you have trouble reconciling the following month. You have two options for recording your bank reconciliation. One is making a note in your cash book , and the other is to prepare a bank reconciliation statement .

Introduction to Bank Reconciliation

How you choose to perform a bank reconciliation depends on how you track your money. Some people rely on accounting software or mobile apps to track financial transactions and reconcile banking activity. Others use a paper checkbook, and balance it each month, to keep a record of any written checks and other transactions. You can also opt to use a simple notebook or spreadsheet for recording your transactions. The accounting records in-office should be used to adjust the bank statement. Using the cash balance shown on the statement, add back in any deposits “in transit”. These are amounts that are received and recorded by a business but not yet documented by the bank.

By doing so, it may be easier to invest the residual funds, as well as to monitor the status of the investment.
Bank reconciliation is a part of the internal controls of a company.
These are categories of discrepancies that cause a difference in the balances between the balances in the bank book and bank statement.
When the bank debits a depositor’s checking account, the depositor’s checking account balance and the bank’s liability to the customer/depositor are decreased.
For example, if a business pays a cheque to a supplier but the supplier does not cash the cheque in the bank in that month.

If your difference is, for example, $21.50, then look for a transaction for this amount on either your bank statement or the QuickBooks list of transactions. You can click on the amount column in the QuickBooks reconciliation screen to sort the transaction by amount.

Business

Cheap Doesn’t Mean Cheap Looking: Affordable Hardwood Floors Trends

Published

3 weeks ago

May 31, 2025

Asripasan

Many people think that good-looking hardwood floors have to come with a high price tag. They believe that affordable options will look cheap or outdated. But that isn’t always true. You can find stylish, durable, and affordable hardwood flooring that turns any room into a high-end space.

Today, more trends are making inexpensive hardwood look luxury. Without breaking the bank, you can still get floors that impress.

Understanding the Perception of Cheap-Looking Hardwood Floors

The stigma around inexpensive flooring

Some think that cheap hardwood always means low quality. They see it as dull, thin, or poorly finished. This makes many hesitate to pick affordable options, worried about resale value or style. It’s a common myth that lower costs come with lower class.

How quality is measured

What makes hardwood high quality? Usually, it’s about thickness, finish, and grain type. Thicker planks last longer and handle wear better. A smooth, high-quality finish looks better and lasts longer. The type of wood grain can also make a big difference. Careful craftsmanship and good materials show off quality, even in affordable floors.

Affordable Hardwood Floor Trends

Trend 1: Wide Planks for a Modern Look

Wide planks are trending now because they give a room a spacious, sleek feel. These larger boards look more expensive and are often cheaper per square foot. They are easier to install and come in many finishes. Sourcing wider planks from local suppliers can save money too.

Trend 2: Reclaimed and Recycled Wood

Reclaimed wood is popular not only because it’s eco-friendly but also because it looks authentic and stylish. Every piece has character, knots, and a weathered charm that high-end flooring can’t match. Plus, using recycled wood often costs less than new, premium hardwood.

Trend 3: Natural, Neutral Color Palettes

Colors like soft browns, greys, and beige are in. These shades make floors look more upscale because they match any decor. Neutral tones also hide dirt better and create a timeless style. It’s easier to update accessories if your flooring stays simple and elegant.

Trend 4: Textured and Hand-Scraped Finishes

Texture adds depth and disguises scratches or dents. Hand-scraped or wire-brushed finishes give a crafted look without the price of custom work. Many affordable engineered hardwoods now come with these textures, saving you money while adding style.

Trend 5: Innovative, Budget-Friendly Materials

Engineered hardwood options have come a long way. They look very real, with detailed grain patterns and matte finishes. Even laminate or hybrid floors mimic the appearance of natural wood perfectly. These materials cost less but can give your space a high-end feel.

Also read: Secrets to Cleaning Your Home in Half the Time

Tips for Achieving Luxurious Looks on a Budget

Choosing the Right Grade and Finish

Select flooring grades that mimic premium styles. Premium-looking finishes like matte or satin add elegance. You don’t need the top-tier grade to get a rich look — just choose carefully and focus on finish quality.

Proper Installation Techniques

A good installation makes all the difference. Hiring a professional ensures a neat, seamless appearance. If you do it yourself, pay attention to leveling and spacing. Small efforts in installation can make affordable floors look custom and luxury.

Maintenance and Upkeep

Keeping your floors clean is key. Regular sweeping and gentle cleaning extend their life and keep them looking fresh. Avoid harsh chemicals, and use mats to trap dirt. Well-maintained floors look more expensive and last longer, even if they cost less initially.

Real-World Examples of Affordable Hardwood Success

Case Study 1: Chic Urban Apartments

A city apartment used budget-friendly engineered hardwood with a wide plank design. The result? A modern, spacious look that rivaled much more expensive choices. Reclaimed wood accents added character without extra cost.

Case Study 2: Suburban Home Renovation

A family renovated their home on a tight budget. They chose neutral, textured floors with hand-scraped finishes. Proper installation and regular care brought a touch of luxury that impressed even friends and visitors.

Expert Opinions

Many flooring specialists confirm that affordable doesn’t mean low class. Interior designers often mix budget options with high-end accessories to create stunning spaces. They say focus on finish quality, texture, and color for a luxurious look.

Conclusion

Affordable hardwood flooring can look just as classy as high-end options when you pick the right styles and techniques. Trends like wide planks, reclaimed wood, and textured finishes are making budget floors more appealing.

By focusing on quality sourcing, smart design choices, and good upkeep, you can get flooring that feels luxurious without overspending. Remember, style isn’t about cost — it’s about how you choose and care for what you have. So, don’t shy away from budget-friendly hardwood. Instead, let these trends inspire your next home upgrade.

Reference:

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Business

Why do Businesses Need Human resource Consulting Services?

Published

2 years ago

August 24, 2023

Asripasan

Human resource consulting firms play a vital role in today’s business landscape. They offer several key benefits and importance to organizations:

Expertise and Specialization:

HR consultants bring specialized knowledge and expertise to the table. They stay up-to-date with the latest HR trends, best practices, and legal regulations. This expertise is precious for businesses without dedicated HR staff or require support in complex HR areas.

Cost-Effective Solutions:

Engaging HR consultants can often be more cost-effective than hiring and maintaining an in-house HR department. Businesses can access high-quality HR services as needed, reducing fixed labor costs.

Customization:

HR consultants tailor their services to meet the specific needs of each client. Whether recruitment, employee training, or policy development, consultants design solutions that align with the organization’s unique goals and challenges.

Objective Perspective:

Consultants offer an objective and impartial perspective on HR matters. They can provide insights and recommendations without being influenced by internal biases or politics, which can be valuable for making difficult HR decisions.

Efficiency and Productivity:

HR consultants can streamline HR processes, making them more efficient. This can improve productivity, as employees spend less time on administrative tasks and more on strategic activities.

Compliance and Risk Management:

HR consultants help organizations comply with labor laws and regulations, reducing the risk of legal issues, fines, and reputational damage. They also assist in implementing best practices for risk management.

Strategic Focus:

Organizations can free up their internal resources by outsourcing HR tasks to consultants to focus on core business activities and strategic initiatives. This can lead to improved business performance and growth.

Scalability:

HR consulting firms can adapt to an organization’s changing needs. Whether a business is expanding, downsizing, or facing other transitions, consultants can provide flexible HR solutions to support these changes.

Access to Technology:

Many HR consulting firms have access to advanced HR technology and software solutions that may be cost-prohibitive for smaller organizations to implement independently. This technology can enhance HR processes and data management.

Talent Acquisition and Development:

HR consultants excel in talent acquisition and development. They can help organizations attract top talent, assess employee potential, and implement training and development programs to improve workforce skills.

Confidentiality:

HR consultants are bound by confidentiality agreements, ensuring that sensitive HR issues and employee data are handled with discretion and professionalism.

Conflict Resolution:

Consultants can mediate and assist in resolving workplace conflicts and issues, promoting a harmonious work environment.

Global Expertise:

For businesses with international operations, HR consultants with global expertise can help navigate the complexities of international HR regulations and practices.

In summary, human resources consulting firms provide valuable support to organizations by offering expertise, cost-effective solutions, and a strategic approach to managing their workforce.

Their ability to adapt to changing needs, ensure compliance, and improve HR processes makes them an essential resource for businesses looking to thrive in today’s competitive environment.

Business

PayPal quietly reintroduces $2,500 “misinformation” fine

Published

3 years ago

October 27, 2022

Rex

Not long after issuing an apology and retracting a $2,500 fine to its users, PayPal has quietly re-introduced the fine into their terms of service and legal agreements.

If enforced, the leading payment processor could fine users the hefty $2,500 sum for spreading “misinformation,” or “hate”, or whatever they deem “unfit for publication.”

While the wording has been changed up, the company has listed several things they would consider fining users over, purely based on speech:

PayPal restricted and prohibited activities
The promotion of hate, violence, racial or other forms of intolerance that is discriminatory or the financial exploitation of a crime
Items that are considered obscene
Certain sexually oriented materials or services
Act in a manner that is defamatory, trade libelous, threatening or harassing
Provide false, inaccurate or misleading information

The original documents, which PayPal said were published in error, had much looser language on what would get users fined $2,500 over – namely the “sending, posting, or publication” of any “messages, content, or materials” that are “harmful, obscene, harassing, or objectionable.”

PayPal has seemingly taken a firm stance against adult / pornographic content in both policies, while the former prohibited things that “depict or appear to depict nudity, sexual or other intimate activities” the new policy vaguely prohibits “certain sexually oriented materials or services.”