Disagreements with the bank.
Disagreement starts with the bank when there is a discrepancy in the bank statement when an accounting staff tries to do the bank reconciliation for the business.
Every cashier tries to keep the cash as accurate as possible with daily up-to-date information. Many receipts and payments have to enter each day. Then the company receives the bank statement regularly, maybe, daily, weekly, monthly, or quarterly.
Unfortunately, the balance shown on the bank statement does not agree with the balance in the cashbook. There can be various reasons for this.
Represent cheques.
When the company makes payments by checks, the cashier enters the cashbook in a day or two because the cashier wants to have up-to-date records. The cashier helps the accounts staff to maintain an accurate cash flow system. However, the payee might not present the cheque to the bank quickly might take some time, so the bank is not aware of the payments made by the company. It is a matter of difference in time making payments, which the bank has not received to enter in their records.
Automatic payments
If the company sets up direct debits with the bank, the bank makes the payments automatically, and the receipts as direct credits also bank credit your account. Therefore, the cashier might have missed these entries, which is the reason for the disagreements.
Disagreements with the bank.
Bank charges and interest
The bank automatically enters either the fees or the interest, and none of the staff are aware of these entries until they receive the bank statement and join the company’s books.
Returned cheques
When you receive checks from your clients, you enter them in your books and present that to the bank. If the bank does not accept, the cheque will return to the issuer, and they will make a contra entry. Your company will not know about it until you receive the bank statements.
Your company staff might have made an error, even if the bank had a mistake, but that is not common for the bank to make mistakes.
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