Balancing Cash at EOP (End of Period)

All cash accounts should be reconciled to the bank balance. Your ending cash balance in the General Ledger Manager should equal the Reconciled Balance from the Bank Reconciliation report plus any deposits in transit less any outstanding checks. You can use the Bank Reconciliation Report for these calculations.  

If it doesn’t balance, please use the following steps:

1.  Make sure all journal entries have been made for bank charges, miscellaneous cash, interest, etc.

2.  Check all transactions from Source 2 (Accounts Payable) and verify the total credits match the Check Register total less any prior period checks voided in the current period.

3.  Add total debits to the cash account from Source 1 and miscellaneous cash receipts entered through journal entries.  Verify the total matches the deposit slips.

4.  Run a Daily Deposit Report that includes PMT, RDP, TAP, and MC transactions. Verify that the total matches the deposits on your bank statement. If they don’t match, check the totals by day.

5.  If the daily totals match but the cash account is still out of balance, look for reversed payments. To assist with this, print an Application Reversals Report (AR Transaction Listings).

6.  When all else fails, check all transactions with Source 1 against the Daily Deposit Report, and investigate any found on the Account History report but not on the Daily Deposit Report and vice versa (transactions that appear on the Daily Deposit Report but not on the Account History report).