In your own opinion, what do you think are the major complications of the bank reconciliation statement?

1. Bank errors

2.Timing Differences

 

When items in the reconciliation get outstanding for a long time than anticipated

The Un Idendified Deposits are the major Complication related to Bank Reconcilliation.

Cheque deposited by the organization but yet not credited by bank

We do Reconsile the credit and debit amount after process the banking cheques for verify , is their any difference or not

Reconciling an account often means proving or documenting that an account balance is correct

Bank Reconciliation Statement is a Statement that reconciles the Bank balances in the books of an organization with the Bank Statement. Differences may be due to cheques drawn by the organization but not yet presented to the bank, bank charges deducted from the account not yet notified to the organization, and payments made to the bank but not yet recorded by the organization. Bank reconciliations are usually performed weekly or monthly and are a form of internal control check.

In my opinion mostly complicated are those bank errors, using the depository acct as the disbursing acct, when crediting to suppliers acct and eventually it was already closed acct, issued check not yet deposited or those steal check.But above all there will be no complications if only the in charge are strictly monitored and updated the in and outs of the bank statements. :-)

It would probably be the analyzing and reconciling the difference of the bank statement to cash book.

I want to give another dimension of complication with respect to Oracle Payroll, After processing payroll, company will send to their official bankers an electronic fund transfer statement which contains employee wise NET PAY to be credited to each employee bank defined in personal payment method. Employee banks can be many whereas Employer bank mostly one. Bank first debits employer bank for the total amount and then keep crediting employee's various bank. It is bound to be a complication with respect to reconciliation.

Timing differences

Bank charges

 

 

Bank Reconciliation

Amount in SDG

 

 

 Account     :       Balance as project                                           229,446.47                                       

 

 Balance as per bank statement:                                               230,188.47

 

Less outstanding Cheques

Date                           cheque No.               Amount

21/2/2012                             138                  742                              (742)

 

Reconciled balance                                                                     229,446.47