Frequently Asked Question
Checking bank statements to G/L FAQS
1. How to Reconcile a General Ledger Account?
Good accounting controls means knowing what's in your balance sheet. If you don't reconcile your accounts on a regular basis you can't be sure if your financial statements are correct. Follow these steps to clear and correct financial reporting.
1. Read your company accounting policy for the account. The first step in reconciling your general ledger account is to know what must be in it. You can't verify that the balance is correct unless you know the rules. Read your company accounting policy manual and simplify any issues with your supervisor or manager.
2. Gather supporting documents. These will differ depending on the type of account you are reconciling. They could be copies of invoices, agreements or contracts, statements from outside parties (like bank statements) or copies of supporting reports from other systems - like accounts receivable.
3. Ask yourself the investigative questions about the items in the account - what are they? When were they created? How do they relate to the company's accounting policies? Why are they in this account balance?
4. Document your explanations and assumptions obviously and completely.
2. What Is a Vendor Reconciliation Account?
A vendor reconciliation account is a balance sheet account found in the general ledger. This account is used to summarize the transactions found on the accounts payable sub-ledger and is also referred to as a control account.
3. What is a bank statement?
An account statement or a bank statement is a summary of all financial transactions occurring over a given period of time on a deposit account, a credit card, or any other type of account provided through a financial institution.
Bank statements are naturally printed on one or several pieces of paper and either mailed directly to the account holder's address, or kept at the financial institution's local branch for pick-up. Certain ATMs provide the possibility to print, at any time, a condensed version of a bank statement.