I know this question asks about basics but sometimes I have troubles to figure out basics on my own therefore I am asking people on forum. Let's say in the previous period there were timing differences . If you want to compare this period cash book with bank statement you need previous period's bank reconciliation statement. Why? Please, explain this to me and provide example.
Hi again
The previous periods bank rec statement would detail the outstanding lodgements and I presented cheques which might now have been presented ....it's a place to start, before you go through the whole process of a new Bank rec against your cash book.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi again The previous periods bank rec statement would detail the outstanding lodgements and I presented cheques which might now have been presented ....it's a place to start, before you go through the whole process of a new Bank rec against your cash book.
what are next steps in present accounting period after timing differences from previous accounting period appear on present period's bank statement ?
Hi Rafal
If the items have no appeared on the Bank statement you can tick them off as normal, if there are some that still do not appear they are again included in the unpresenteds/outstanding lodgements Bank rec statement.
The best way to look at this is to create your own cashbook using your own personal expenditure/income and then do a Bank rec using your own Bank statements - go back say 12months and do them one month at a time. Or every two weeks if there are loads of entries.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
