Steps in Preparing a Reconciliation

11

Complete the calculations required on your worksheet. The balances should be the same.

6

Compare the amount of each check with that shown on the bank statement.

1

Compare the ending balance on last month's bank reconciliation with the beginning balance on this month's bank statement.

5

Arrange in numeric order the checks returned with the bank statement.

7

Compare each canceled check with related information in the check register.

4

Compare each deposit on the bank statement with the deposits recorded on the check register. Put a small check mark in both places if the amount and date agree.

12

Prepare a clean, correct copy of the bank reconciliation.

2

Record on your reconciliation worksheet the balance in your check register as of the last day of the month.

10

Record on your worksheet any charges shown on the statement that are not recorded in your company's records.

8

Record on your worksheet the number, date, and amount for each check that was written but had not cleared as of the bank statement date.

3

Record the ending balance as shown on the bank statement.

9

Review last month's outstanding checks as listed on the bank reconciliation to determine which ones are still outstanding.