There can be times when the bank statement and your cash book record do not match. This happens due to number of reasons and sometimes becomes difficult to trace out what went wrong, where the numbers are missing, what date the lapse happened. To track the full details of the month or of full year if the error came to be noticed late will require you an accountant that can help you with this lengthy process and get you out of the sticky situation.
For healthy maintenance of the ledger it is always advisory that you get your passbook updated every month and check that with the balance recorded in your cash book. Each time it should match but if it doesn’t consider going through the following reasons:
- Pending cheques approvals: Sometimes there can be delay in approval of the cheques from the bank or the organisation side. This is rare but it can happen especially if the cheque due to be submitted in the bank is still lying in the files or it did pass but you did not get notified. In this case you need to tally with all the records you have for any cheques submitted and recheck the status of each. You should be able to trace it out easily as the record space will show empty.
- Duplicate entries: Room for human errors is always there. Sometimes if the balance does not tally with that of your passbook, there can be a chance that you made a duplicate entry. For that you will have to go through your ledger and check date wise if there is any error.
- Missed out payments: There can be a time where some payment is due to be paid. In this case you will have to go through the bills and receipts. In order to expedite the process you can also get in touch with the sales and purchase department.
Above are the major reasons of lapse. You can always get business accounting service from a well known accounting firm that have a good reputation in giving out bank reconciliation services.
