How To Do A Bank Reconciliation (EASY WAY)
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- เผยแพร่เมื่อ 29 พ.ค. 2024
- 💥Bank Reconciliation Cheat Sheet → accountingstuff.com/shop
Join me in this episode of Accounting Basics for Beginners as I show you how to do a Bank Reconciliation from scratch.
In this Bank Reconciliation tutorial, you'll hear the definitions of Bank Statement and Cash Book and learn why the following situations can cause differences between these two reports...
▪ Omissions
▪ Timing Differences
▪ Errors
You'll then find out how the Bank Rec is useful in terms of calculating the 'True Cash Value' of a business. And finally, I'll show you how to prepare the Bank Reconciliation using 7 steps...
The techniques that you'll discover in this Bank Rec tutorial can be applied in your own work to easily reconcile the Bank Statement to the Cash Book.
🔴Subscribe for more Accounting Tutorials → geni.us/subtothechannel
⏱️TIMESTAMPS
00:00 - Intro
00:58 - Bank Statement Definition
01:14 - Cash Book Definition
01:52 - Why do the Bank Statement and Cash Book disagree?
03:38 - What is a Bank Reconciliation?
04:03 - Why is a Bank Reconciliation necessary?
04:23 - When are Bank Reconciliations done?
05:29 - Step 1 - Get copies of the Bank Statement and Cash Book
06:20 - Step 2 - Bank Reconciliation template
07:48 - Step 3 - Tick all matching transactions
08:28 - Step 4 - Calculate adjusted Bank Statement balance
10:28 - Step 5 - Calculate adjusted Cash Book balance
13:07 - Step 6 - Check that the adjusted totals match
13:43 - Step 7 - Prepare the necessary Journal Entries
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#accounting #accountingbasics #accountingstuff
The bank reconciliation can be a real headache if it get's left alone for too long... and most of us probably don't do it regularly enough. How often do you do you reconcile the Bank Statement?
I do it everyday on where I work at, accessing the bank everyday and reconciling on our reports. Thanks for your vids James. Really helpful!
@@kevinguzman4874 Hey Kevin, sorry for my late reply. Yeah I used to work for a big construction company where we had to do it every day as well. Got to keep on top of this stuff!
at work we just post stright off of the bank statement......
Thank you for this. I start my bank Rec. from tomorrow.
Nearly every day.. we have it in our syllabus :(
This guy must of knew they were people who can’t afford the proper education and would eventually find his content on TH-cam. Thank you 🙏🏾 Your changing lives
Tbe Dre I’m in classes and still need this b/c the classes aren’t even any good. If you don’t need the cert, this is a much better option just to learn it to do it.
Hayley Researching i agree
He also knew that sharing info on TH-cam could be a pay check.
Right not all afford to study. So they watch a lot of videos to learn in this kind of learning in Utube lessons. Just like me. Thak
Nks for sharing his video who wants to learn also. It could a big help for me and to others.
bro, i'm an accounting major and I still listen to his videos lol. This is better than a "proper education".
Anybody watching this night before test?
Good luck in your test!
@@AccountingStuff thankx
Yep lol
@@fnstation Good luck!
Me. Test in 7 hours.
When he's better than your normal
Accounting professor....😬
Thanks!
@@AccountingStuff I just want to say ....your amazing keep up your good work....being a 16 year old student and doing accounting in the Caribbean it's been really tough....you help me during this time of Covid-19 when I was stranded and exams is coming closer.......Thankq for all the videos and explaining things so thoroughly....so much better than my Accounting teacher......
@@ashleyramroop9678 No worries, I'm happy to help. Hope you're keeping safe & well!
Go shop with @Darkfeet7 on telegram he is the best he has been helping me with card for about three months,
I graduated 5 years ago and this always confused me. You explained it in 17 minutes and it makes perfect sense.
Glad it's made sense!
RIGHT ! i think I got it once I started actually doing the work real time.
so much helpful than my professors. My god, spend so much when we have youtube university
Thanks :)
that's true~ LOL
That’s me LOL
before interview !
I am watching this tutorial from South Africa preparing for an exam I'm having in about 10 hours time from now on. This is extremely helpful. It has helped given a framework of the procedural approach to Bank reconciliation.
Thanks buddy!
Hope the exam went well!!
I'm in grade 11 and preparing for 1 on Monday. I'm struggling with the correcting of errors in the journals and making the recon balance
Mandisi Gladile how did your exam go ??
CONGRATS
Same as me😅😅😅😅
I cannot tell you just how grateful I am for this tutorial! I've got an accounting test on Thursday and I was extremely confused with the notes given to us, so this was a real life saver! Thank you!
Best of luck in your test! Hope you smash it!!
I am so amazed at how incredible your videos are. The aesthetic of the videos are absolutely amazing. The aesthetic really reflects a clean and easy tone which adds to your simplified style of teaching. Your channel is absolutely incredible. Like the time stamps on your description, smooth and clean layout, the step by step explanation, and clear voice like this is qualityyyy. Thank you so much for your videos I absolutely love them.
Thanks for your kind words, I'm happy to hear that you're enjoying the channel!
I just started my first accounting job recently and I’ve been doing fine with everything except for the bank reconciliations. It’s my biggest weakness right now. My company has a ton of checks, eft, and wire transfer activity, and I’ve been getting migraines trying to reconcile my accounts on time monthly. I feel more confident when i come into work next week after watching your video tutorial. Thank you for making this! I hope to be as good as you.
Hey Jason, sorry to hear that you've been having a rough time with this. Bank recs can easily get out of control, but if you follow the steps and be methodical about them then you should be fine. All the best!
I'm due to sit my financial accounting exam next tuesday, and this is the most clear and easy to understand explanation of how to do Bank Rec's that I've ever found. Thanks very much
Thanks David, great to hear that you found the video helpful. Best of luck with your financial accounting exam. Hope you crush it!
TH-cam should have a tip jar. You're single-handledly getting me through accounting brother! Thank you for everything you do.
They do now!
Love it! Finally TH-cam has videos that are REALLY HELPFUL and EASY to understand. No headache after watching :)..haha.
Thank you for putting time and effort into your videos. They are amazing ^-^
Hey Ksenia, thanks for the kind words!!
As someone who graduated with Finance and landed a role in accounting, this daunting task of bank rec's became so much more clearer thanks to you!! Keep it up, subscribed!
You still working in accounting?
Honestly, James, I would get nowhere in class without you! Thanks a bunch, man!
No worries, best of luck with your studies!
Watching this to refresh my mind since it's almost two years since I last take my accounting class and now I have accounting class (again, grrr). This is so helpful!! Very easy to find and not boring. Thanks a lot!! 💓💓
Great to hear it's making sense. All the best with your studies :)
I don't think there could be any other channel on this planet than you!!
As they say you need to be the best in your profession to get there, and trust me you are the epitome of the best out there in terms of explaining in the simplest possible way. I think even non-accounting or finance background people can learn it via your channel. I just regret paying school fees to crappy teachers who made things complicated......
Thanks a ton :)
James 15 minutes video = Sir 1.5 hours lecture.
So, James's video >>> Sir's lecture. Thanks for this amazing content.
I’m hoping to break out into accounting someday I’m going through the fundamentals and you have been such an inspiration and a help dude. Thank you so much for all of your hard work and time you have put into these videos
That's great to hear Michael! Thanks :)
Finally a fun way to learn accounting. I had to kind of train myself on the bank rec. We transitioned from QB (automatic rec) to SAP where we have to use the old friend Excel. No one spent enough time to explain it so well! Thank you!
No worries, I hope the steps help you get your work done quickly
I was always doing it on Excel. Do you mind telling me why your company moved from QB to SAP?
@@mawaisonline Well, our company became too big for QuickBooks. It works great for smaller companies. I know it is not the best system, but I enjoyed working on QB.SAP it not that intuitive
i missed one lesson in school and thank god i googled bank recon and found yr channel, u earned a new sub hehehehe :>
edit: BRING ON THE 7 STEPS
*ad*
Great to hear that you enjoyed the vid, and cheers for the sub!
I think I just passed my exam thanks to you 😁😁
That's fantastic news! Well done :)
@@AccountingStuff Just discovered your page after going back to school to start a second degree! Love it
man i am so glad i stumbled upon your channel.
i'll be starting my internship next month and the company mentioned that they would probably let me do bank recon, among others. i became so anxious cause i remembered how i sucked at this so bad back when i was a first year student then i discovered this video and you explained it so so well. i was also having trouble picturing my future in the accounting field, doubting myself here and there, but i scrolled through your other videos and somehow i felt a sense of peace if you may and a feeling of wanting to do my absolute best.
anyway this channel is a blessing and i hope you know that you help your viewers in more ways than one. thank you so much once again james! best believe i'll be binge watching your videos for the next few days 😅
You've got this!! Best of luck with it all. I hope it's a valuable experience for you
I'm so happy to find you. you are the best teacher that I've found on youtube.
My kids started a Civil Works Construction Company in March 2020. Three days later covid19 restrictions hit and they couldn't afford a bookkeeper so at 63years old I took on that role. We survived first 2 years where Tax Returns were sensational. That's because they basically used their own capital and the Government support Jobkeeper packages to survive. Things have really picked up now and cash is increasingly flowing in and out all the time so I needed to understand how to create the Cashbook and Reconciliation Statements... it's been a nightmare. Your video has changed that for me. Thanks James, your tutorial is so easy (and fun???) to follow. I'm sure I'll nail this now. I'm going to go through the rest of your videos to learn how to streamline all our account-keeping books more effectively and accurately. Thanks so much you're amazing. Who said an old dog can't learn new tricks. Lol🤓🤣
I'm an accounting major and bank reconciliation has always been a weak area for me and something I try to avoid as much as possible but I know I'll have to face it cause I did on an internship so I'm taking the time to relearn it since I have time because of quarantine. So here I am attempting to challenge and overcome this weak area. Your video has been super helpful with understanding it better and it doesn't hurt that your smile keeps me concentrated a little 😂😂😂
Thanks Cassie, I'm glad to hear that you're using using your social isolation time productively. Please stay safe
Fair Play man you really put alot of effort in your videos and the clarity in which you explain each step is amazing.
Cheers Lir!!
You just explained and demonstrated in 17 minutes what my professor couldn't in 2 hours!! Your videos have helped me so so much this semester and I wouldn't be passing without them!
Glad I could help!
That was so great; clear, concise, well done! Thanks so much!
Now I can do my project for school!!! Thank you. This was well explained and clear.
Nice one, good luck with your project
James, you are an absolute life saver. Your videos are amazing, everything from your explanation to the aesthetic of the video is perfect. 👌
Keep up the good work 👍
Thanks for your kind words!
Thank you so much. I didn't know anything about bank rec and you just helped me millions times!
Thank you. Excellent video. Very clear instructions and examples and entertaining at the same time!
Ahh I really just want to say well done. If someone asks me what is the definition of a well thought out, planned, organised and executed youtube video, I would definitely refer them to your channel. I can really see the effort you put in to making each and every word you speak is well formed and articulated, the way you explain things are very well set out and easy to understand, and you even went through the effort of dividing your video into different parts. Really, well done! Keep up the good work!
Thanks, I'm happy you enjoyed the video! Cheers for your kind words :)
@@AccountingStuff anytime 💯
Wow thank you so much. You helped me understand this!!
No worries, glad to hear that you've got the hang of it!
This helped SO MUCH with my auditing class!!
Thank you so much!
Thank you! The way you have presented this makes so much sense. The process was always a bit foggy for me but now I get it
This really helped me a lot with my exam just yesterday. I hope you could deal more with intermediate accounting stuff. Pleeeaaaase ;((
Thank you!
Great, hope it went well! Haha, yes I'd like to get into some more technical stuff soon.
"bring on those steps!" *Video pauses and goes to an ad.
i thought it happened only to me...
Thought that was quiet funny
honestly im so glad there's comments about that. so that's one of the few ads I was happy to sit through cause i respect the effort
@@JoseOrtega-rz1gr same! he's very clever.
That happened to me too 😄
Ótimo video!! Aprendi em 17 minutos o que os professores demoram um semestre inteiro para ensinar. Obrigada (Brazil)
Thanks Isa!
Really helpful, I needed the Accounting part at the end, pretty much what I expected. Appreciate the walk through.
No worries, hope it's making sense :)
Thank you so much! I'm studying accounting in Canada, this is really helpful! I can learn more on TH-cam than in school now! lol...
I find that I do most of my learning on TH-cam these days. Good luck with your studies!
Thank you! You are much easier to understand than my university professors!
Thanks, that's kind of you to say!
true AHAHHAHA
True!
You are a wonderful teacher, you most definitely earned yourself a new follower
The best I've ever seen teaching this. Keep up the excellent work!
Thanks, will do!
I just learned this a day before my exam I'm writing tomorrow, thanks for the tutorial from Namibia
Good luck, hope it goes well!
Thanks! I needed a quick, clear review of this.
No problem, I hope it helped!
Thank you very much for making these bank recs easy to understand))
I'm studying accounting online, and it's a paaain! Thank you for this video, really helps understand the concept better.
I'm also studying it online. Best of luck with your accounting journey!🎓🏆
@@ngcwelekazijbooi thank you! Wishing you all the best as well!
@@yuliataylor6884 Thank you!
All the best with your studies!
@@AccountingStuff Thank you!
The basic thing you need to understand is your bank account in the book of the bank, in other words the bank statement you receive from your bank is said to be 'credit account', that is to say, it increases to credit and decreases to debit, and your bank account in your own book is called a debit account, in other words, it increases at debit and decreases at credit. Therefore, you compare the column credit in the bank statement from the bank with the column debit in your own book.
Don't panic, just look at the figures carefully, you will detect where the problem, if there is one.
Very good. This was the easiest explanation of Bank Rec that I've see. Keep up the good work.
You’re helping me so much with accounting!! You’ve just earned a new subscriber!!❤
Hi!! This was the first video I saw from your channel and I LOVED IT! Funny, to the point, and with examples!! YEEESSS!! Already subscribed 👍🏽 Will go right to your channel if I have any accounting questions! 😁😁
Thanks and cheers for the sub! Glad you found it useful :)
Dude can you please make videos about control account reconciliation ? And control account correct postings ?
Hey Dihan, thanks for the suggestions!
Great one! I really love the way you make it looks so simple. Good job!!!
Very clear! Thanks your video! And thanks for uploading. Really help!
Someone else also watching this video the morning of the test?
I like his accent
Thank you for producing this video. It was easily to follow and understand step by step. A clear template.
Your tutorial helped me a lot .Thanks.
1:06 - who knew he had a twin brother (lol)
Why am I paying thousands to go to school if they just tell me to watch free youtube videos
I have 2 classes this semester and one (accounting obviously) teacher tells us to watch various you tube videos. My econ techer actually does PowerPoints and lectures. All online.😅
No words can describe how this man has made my understanding of accounting better. Great job bro👌
You're the best! Couldn't have done my work without your help, Thank youu
This video is so helpful, much better than the way our text book explains accounting steps. Thank you!!
thank you for these useful videos you can't imagine how much you helped me
I’m so glad I found your channel ☺️
Very informative, clear and understandable, I wish you were my teacher in Basic Accounting way back in college.
I took my board examinations twice in the Philippines but I failed and I will be taking my CPALE again on MAY 2021 and now I feel I can nail it. I remembered my first take there were 7 questions regarding Bank Recon.
Keep up the good work!
I’m from Philippines.
Best of luck with your resit. You've got this!!
This video was very helpful! Thank you!
I have only done two bank recs so far and I will have to do this task on a monthly basis. I finished the second one just tonight and it took me two horrible days trying to figure out the discrepancy. We spell cheques as checks here in the U.S. but this video was very helpful and on point. Thank you for helping me gain a better understanding.
No problem! Bank recs can be a pain. Got to stay on top of them. Best of luck!
Love the presentation about bank reconciliation. The best available on TH-cam.
Thanks, glad you enjoyed it!
Straight forward and easy to follow thank you so much man
Thank you so much! This really helped me a lot. You're really good at breaking down the examples, resulting a clear explanation for people who have a hard time understanding bank recons. Earned a sub 👍
No worries, cheers for the sub!
I have to say, your videos are honestly more helpful than my college courses... Keep up the good work
Accounting Stuff and most importantly, James is a life saver❤
This video was extremely helpful along with all other content available at this channel!
thank you so much! im starting from scratch for accounting mocks tomorrow, you helped me so much
You my friend, are a lifesaver!
Thanks a lot, man! You really helped me with my exam last week! Really appreciate your work.
All my life, I've hated accounting. But hey, i just found this page, and I'm here to stay. Seems like I'll be loving it here!
Thank you for this video.. it helps a lot to us 🙏🏼
Thank you for your efforts. It's all appreciated
My nephew recommend your video to me as I am learning accounting, it's helpful, thank you for create these educated video to public.
Dude .. you made it sooo simple to understand.. well done mate.. cheers
No worries, glad to hear that it's making sense for you!
Amazing content. True geniouses make complicated things simple
Concise yet detailed. Love you
Thanks :)
Thank You ! Enjoyed the video and the explanations.
You're very welcome :)
Appretiate the exhaustive explanation! Great video!
This content is aesthetically and informatively amazing!
Cheers Alan, glad you enjoyed it!
Thank you. You're such a lifesaver
You made it same so simple; thanks.
Thanks soo much professional.This is all that I need 🙏God bless you 🙏
I'm currently doing a medical billing and coding class. I was super confused and lost bout bank reconciliations. This video was perfect and I have a way better understanding! Thank you!
All the best with your studies!
Easy does it James, well done.
What a cool approach! Thank you for the share.
Good job buddy, you nailed it, better than my accounting classes.
Such a great job you are doing...the simplest way to understand. Kind of nervous about accounting or recs but feeling better about it. You even make it funny. Thankyou so much. God bless you real good.
Really helpful. Thanks!
Thank you so much, this was very well explained and very helpful. Keep it up!
No problem, glad you enjoyed it!
I had a hard time understanding this but after this video I am super clear on this topic thank you so much. I love your videos
Brilliant video! Thoroughly enjoyable and helpful. Thanks for putting that on.
Cheers Lisa, happy to help!