![]() ![]() Accountants must reconcile the cash balance per the books to the bank statement balance, and post any required adjusting entries.Ĭredit card statements are also used to reconcile the cash account, because cash payments are made to reduce the credit card balance. Accountants need a complete set of receipts, vendor invoices, bank statements, and credit card statements to reconcile each account in the general ledger.Ĭash is often the account with the most transactions, and reconciling cash is time consuming. The accounting staff uses a number of documents to reconcile each account, so that the account reports the correct year-end balance. The company records payroll expense and accrued payroll (a liability account) on 12/31.Īccounting departments typically maintain a closing checklist of required month-end and year-end closing entries in the accounting system.
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