Learn Bookkeeping in 7 Days: Don't Fear the Tax Man

Day 4: End-of-month reconciliations - proving our transactions

Key terms and concepts

• Bank reconciliation statement: the form we use in the process of reconciling your bank statement to your Cash at Bank account.

• You must reconcile your bank statement to your Cash at Bank account on a monthly basis. Before you complete your quarterly BAS, you must ensure that all three months of that quarter have been reconciled. This is a crucial aspect of your bookkeeping process.

So far we have learned how to classify using our chart of accounts, record our transactions into journals and post them to the general ledger accounts, and shortcut that process by using special journals to summarise that data before it is posted to the ledger.

Now we must ...