What is an Outstanding Check?
Bank reconciliation is an essential monthly ritual that ensures your records are accurate. The either/or dilemma is often between viewing the bank statement as the truth and viewing the checkbook as the truth. The solution is to adjust both to find the common truth.
When you prepare the reconciliation, you start with the closing balance from the bank statement. You add any deposits in transit (deposits you made that haven't appeared on the statement yet). You subtract all outstanding checks (checks you've written that haven't cleared the bank). This Sound process ensures your adjusted bank balance perfectly matches your adjusted checkbook balance.
Ready to build a solid foundation? Read more on this topic by visiting https://www.safesimplesound.com/business-checkbook-strategy/.
DISCLAIMER: This content is for educational purposes only and should not be considered personalized financial advice. Always consult with a qualified financial professional before making financial decisions.