Series 1: Things I Notice

Series 1: Things I Notice as an Accountant 🧾Episode 1: Bank Balance ≠ Accounting Software Balance? What do I check first? One of the first things I check when reviewing a clients books is whether the bank balance matches the accounting software. And when it doesn't? I don't start by changing numbers. 👀 I start by investigating. Here's my checklist: 🔹 1. Check the statement closing date. Are you comparing the bank balance and accounting software balance for the exact same date? 🔹 2. Look for missing transactions. Sometimes, bank fees, customer payments, or supplier payments haven't been recorded in the books. 🔹 3. Check for duplicate entries. A transaction might have been entered manually and imported through the bank feed. Yes, it happens! 🔹 4. Review outstanding payments and deposits. A payment may be recorded in the books but not yet cleared by the bank. The same goes for deposits still in transit. 🔹 5. Check for incorrect amounts or dates. Even one extra zero or a transaction posted in the wrong month can create a difference. 🔹 6. Review bank reconciliation. If the difference still exists, I review the reconciliation and investigate any unexplained balance. Here's something important I always keep in mind: A bank balance mismatch doesn't automatically mean there's a mistake in the books. Sometimes, its simply a timing difference. The key is understanding why the difference exists. Because good accounting isn't about making the numbers match at any cost. Its about making sure the numbers make sense. 💡 I'm curious Accountants and business owners, what's the most common reason you've found for a bank reconciliation difference? Share it in the comments. 👇 #Accounting #Bookkeeping #BankReconciliation #SmallBusiness #ThingsINoticeAsAnAccountant