What is a bank accounts reconciliations procedure?

 Bank Account Reconciliations 

1.      All bank statements are given unopened to the Owner/President. The Owner/President reviews the statements for unusual balances and/or transactions.

2.      The Owner/President gives the statements to the Bookkeeper for timely reconciliation as follows: a comparison of dates and amounts of deposits as shown in the accounting system and on the statement, a comparison of inter-account transfers, an investigation of any rejected items, a comparison of cleared checks with the accounting record including amount, payee, and sequential check numbers.

3.      The Bookkeeper will verify that voided checks, if returned, are appropriately defaced and filed.

4.      The Bookkeeper will investigate any checks that are outstanding over six months.

5.      The Bookkeeper will attach the completed bank reconciliation to the applicable bank statement, along with all documentation.

6.      The reconciliation report will be reviewed, approved, dated, and initialed by the Owner/President.