A Monthly Bank Account Reconciliation

members can relax knowing that by appointing a company that is regulated by the Royal Institution of Chartered Surveyors (RICS) their service charge money

• will be held in a bank account which is a designated client account.
• will be reconciled at least every 6 weeks.

members can use our online software to reconcile the blocks bank account & log money received and paid.

Why reconcile a bank account?

In book-keeping a clerk keeps a log (cashbook ledger) into which they record cheques written and receipts banked. When a bank statement is received the process of reconciliation checks the cashbook ledger against the bank statement to confirm the true balance of funds.

The objective of bank reconciliation is to ensure the manual/computerised cashbook ledger upon which decisions will be made, is accurate.

Transactions that may need to be adjusted include

1. payments into the account which may have bounced, (i.e. cheques returned by the bank, direct debits claimed where the payee had insufficient funds and therefore the payments are bounced).
2. additional receipts that may need to be entered include receipts such as bank interest.
3. Payments/cheques which are out of time for example a cheque that is over 6 months old will be written back (reversed) and cancelled with the bank to increase the cashbook ledger balance to reflect that the payment is no longer expected to clear the bank account.

What is a cashbook?

A cashbook is a ledger which shows the financial transactions being made into and out of an account.

Without a robust bank reconciliation process the integrity of credit control or arrears action is undermined.