Bank reconciliation
In Arabic التسوية البنكية
The check that the cash balance in the books agrees with the bank statement, after explaining items one side has and the other does not.
In plain words
The bank and the books rarely show the same balance on the same day. A deposit made late on the last day, a cheque the vendor has not cashed, or a bank charge you have not booked all open a gap.
The reconciliation lists those items on each side until both reach the same adjusted figure. Anything left unexplained is an error, or something missing from the books.
The common mistake is pushing the difference into a suspense account to close the month. It hides the error, and the gap grows every month after.
- Bank statement balance
- SAR 48,200
- Deposit in transit
- + SAR 3,500
- Uncleared cheque
- − SAR 2,900
- Book balance
- SAR 48,860
- Bank charge not yet booked
- − SAR 60
- Both sides
- SAR 48,800
In Axon Suite
How Axon Suite handles it
Axon Suite reconciles each bank account against the statement balance, and an unreconciled bank account is flagged when a period is closed, without stopping the close. Importing a bank statement and matching its lines is not in Axon Suite yet.
Feature
Close and lock accounting periods
Close a period and nothing posts into it again, whether it comes from sales, purchasing, stock, the till or a rep’s van. Reopen it when you need to, in order, or lock it for good.
Open: Close and lock accounting periods