This checklist ensures that all cash transactions are accurately reconciled with bank statements on a regular basis. It helps in identifying discrepancies and ensuring that the cash balance in the accounting records matches the bank records.
Collect all relevant financial records including bank statements, cash register reports, and accounting records for the reconciliation period.
Check that all deposits recorded in the accounting system match those in the bank statement.
Ensure that all withdrawals, checks, and electronic payments have been recorded accurately in the accounting records.
Compare the cash balance in the accounting records to the balance shown in the bank statement. Note any discrepancies.
Investigate any discrepancies found. This may involve checking transaction details and verifying with other departments if needed.
Adjust the accounting records for any errors or unrecorded transactions identified during the reconciliation process.
Once all discrepancies are resolved, finalize the cash reconciliation report and document any necessary adjustments made.
Submit the finalized cash reconciliation report to the finance manager for approval.
Store all documentation related to the cash reconciliation process securely for future reference and compliance.