Stage 5 -
Reconciliations
Use the bank reconciliation feature to check that the entries
shown on your bank statements match those recorded on IRIS
Bookkeeping (see the Bank Reconciliation section
of Help within IRIS Bookkeeping for more information). When you
select a bank, all cash book entries for that bank will be
displayed.
Completing entries in the Cash Book
There are various reasons why items may appear on the bank
statement but not in the cash book. For example, if a customer
chooses to pay via a bank transfer direct into the company’s bank
account, then you may not become aware of such an entry until you
actually receive your bank statement.
Another example would be bank charges, since you may not
receive an invoice of any kind and the charge is taken directly
from your bank account.
Where closing balances differ
- Even after updating your cash book there may still be a
difference between the cash book and bank statement balances.
- For example, an item may appear in the cash book but not on a
bank statement due to an ‘un-presented' cheque. For instance, if a
cheque had been paid to Supplier A on February 20, who banked it on
February 21 but was not presented to your bank until February 23.
Similarly, if you had received a cheque for £100 from Customer A on
March 31 but did not bank it until April 1, then a difference would
exist.
You will need to update cash book entries and check for any
differences between your cash book and bank statement balances in
order to reconcile bank account.
