All 23 Reconciliations questions
More in Reconciliations
How do you reconcile petty cash and expense floats? What is the account reconciliation process at month-end close? How do you deal with aged, unexplained reconciling items? How does reconciliation support the financial-close controls and audit? How do you handle timing differences in month-end reconciliations? How do you reconcile accounts payable to the trial balance and supporting sub-ledgers at consolidation? How do you reconcile a clearing/suspense account to zero at period-end?
Advertisement
Back to results for “Bank Reconciliation”
Accounts Payable & Receivable › Reconciliations

How do you reconcile cash across the bank statement, cash book, AR receipts, and AP payments?

Advanced

Answer

Tie the movements together: AP payment runs and AR receipts recorded in the ledgers should match cash out/in on the bank statement, with the bank reconciliation explaining timing (outstanding checks, deposits in transit) and bank-only items (fees, interest, returns). This end-to-end tie confirms both sub-ledgers and the GL agree with actual cash.
Real-world example A payment run total, customer receipts, and the day's bank movement all reconcile once outstanding checks and a deposit in transit are accounted for.

Common follow-ups: What timing items arise between ledgers and bank? | Why tie AP and AR to the bank?

Payment Runs Cash Application Reconciliations
All 23 Reconciliations questions