How do I do account reconciliations?

Answer 1

You check that what ACTUALLY happened is the same as what you THINK happened! If you wrote 5 cheques on your bank account, but when you get your bank statement and check it against your cheque book, there were 7 cheques, you would know that there is a problem.

I work for a merchant bank. When we reconcile the accounts, what we do is to check that what actually happened on the market is the same as what our clients think they did on the market. So if for example we find that the client side says that they bought 1,000 Enron shares, but the Market side says they bought 1,000 White House Oil Enterprises shares, we can spot that the client should probably seek psychiatric help.....
You get the picture?

Answer 2

The beginning balance plus the sum of all entries on a ledger or in a checkbook register must equal the ending balance on an account statement. Deposits, interest received, and credits are added to the beginning balance. From this total amount, automatic withdrawals, checks outstanding, checks negotiated, and account charges are subtracted. When the resulting balance equals the ending balance on the account statement, the account is reconciled.

Answer 3

Mediation often works, but sometimes you just have to resign yourself to the fact that the accounts just weren't made for each other.

Answer 4

You match the payments and receipts with the information on the statements.