Bank Reconciliation

💥Bank Reconciliation Cheat Sheet →

Join me in this episode of Accounting Basics for Beginners as I show you how to do a Bank Reconciliation from scratch.

In this Bank Reconciliation tutorial, you’ll hear the definitions of Bank Statement and Cash Book and learn why the following situations can cause differences between these two reports…

▪ Omissions
▪ Timing Differences
▪ Errors

You’ll then find out how the Bank Rec is useful in terms of calculating the ‘True Cash Value’ of a business. And finally, I’ll show you how to prepare the Bank Reconciliation using 7 steps…

The techniques that you’ll discover in this Bank Rec tutorial can be applied in your own work to easily reconcile the Bank Statement to the Cash Book.

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⏱️TIMESTAMPS
00:00 – Intro
00:58 – Bank Statement Definition
01:14 – Cash Book Definition
01:52 – Why do the Bank Statement and Cash Book disagree?
03:38 – What is a Bank Reconciliation?
04:03 – Why is a Bank Reconciliation necessary?
04:23 – When are Bank Reconciliations done?
05:29 – Step 1 – Get copies of the Bank Statement and Cash Book
06:20 – Step 2 – Bank Reconciliation template
07:48 – Step 3 – Tick all matching transactions
08:28 – Step 4 – Calculate adjusted Bank Statement balance
10:28 – Step 5 – Calculate adjusted Cash Book balance
13:07 – Step 6 – Check that the adjusted totals match
13:43 – Step 7 – Prepare the necessary Journal Entries

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