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This is where your accounting software can help you reconcile and keep track of outstanding checks and deposits. Most reconciliation modules allow you to check off outstanding checks and deposits listed on the bank statement. Give your customers the option to pay via credit card, debit card, PayPal, or bank transfer. QuickBooks processes the payment and transfers the money to your bank account. There\u2019s even a mobile card reader so you can swipe or dip the card from your phone or tablet.<\/p>\n<\/p>\n
There will be very few bank-only transactions to be aware of, and they\u2019re often grouped together at the bottom of your bank statement. Once you’ve completed the balance as per the bank, you’ll then need to work out the balance as per the cash book. These checks are the ones that have been issued by your business, but the recipient has not presented them to the bank for the collection of payment. At times, you might give standing instructions to your bank to make payments regularly on specific days to third parties, such as insurance premiums, telephone bills, rent, sales taxes, etc. However, there can be situations where your business has overdrafts at the bank, which is when a bank account goes into the negative as a result of excess withdrawals. Now, simply compare the transactions on your statement with what’s in QuickBooks.<\/p>\n<\/p>\n
You’ll need to adjust the closing balance of your bank statement in order to showcase the correct amount of withdrawals or any checks issued that have not yet been presented for payment. These fees are charged to your account directly, and reduce the reflected bank balance in your bank statement. These charges won’t be recorded by your business until your bank provides you with the bank statement at the end of every month. Book transactions are transactions that have been recorded on your books but haven\u2019t cleared the bank.<\/p>\n<\/p>\n
Such errors are committed while recording the transactions in the cash book, so the balance as per the the audit risk model<\/a> cash book will differ from the passbook. It\u2019s important to perform a bank reconciliation periodically to identify fraudulent activities or bookkeeping and accounting errors. This way, you can ensure your business is in solid standing and never be caught off-guard. All of your bank and credit card transactions automatically sync to QuickBooks to help you seamlessly track your income & expenses. In addition, there may be cases where the bank has not cleared the checks, however, the checks have been deposited by your business.<\/p>\n<\/p>\n<\/p>\n
Not-Sufficient Funds Checks<\/h2>\n<\/p>\n