SOP For Bank Reconciliations
SOP Number: Finance and Accounting – 10
Department: Cash Control
Date Issued: 29-Jun-2021
Time to Train: 25 Minutes
Purpose of Bank Reconciliations:
The purpose of this policy is to verify all banking transactions from the bank statement to General Ledger on a current basis and ensure adjustments are done on a timely basis.
It is the responsibility of the Financial Controller to ensure that all bank accounts are reconciled and approved prior to the close of the following month.
Bank Reconciliations SOP Procedures:
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Bank statement cut-off dates should coincide with the Hotel’s respective accounting cycle.
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Checks should be listed in numerical sequence on the bank statement and actual checks should be in numerical order.
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All bank generated items (returned checks, wire transfers and chargebacks) shown as debit or credit items on the bank statement should be returned to the Controller immediately.
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The check reconciliation process should be followed at all times.
Bank Reconciliation Procedure:
The following format should be used to reconcile the bank statement to General Ledger.
| General Ledger Balance Calculation | ||
| Balance per Bank Statement | $ | $1000.00 |
| Deposit In Transit | + | $200.00 |
| Outstanding Checks | - | $250.00 |
| True Cash Balance | = | $950.00 |
| Reconciling Items | +/- | -$50.00 |
| General Ledger Balance |
$900.00 |
|
Note: Reconciling items should be listed separately and cleared individually through General Ledger in the following month. Stale dated checks should be investigated and cleared within six (6) months of the date of issue.
Training Summary Questions:
Q1. What is the purpose of the Bank Reconciliations SOP?
Q2. How to list and check the bank cheques?
Q3. Who is responsible to ensure that the Bank Reconciliations is happening as per the policy?
Q4. Write down the format for reconciling the bank statements?
