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Cash Flow Reconciliation


(@giselle)
Joined: 2 years ago
Posts: 8
Topic starter  

Hi all, 

Is there anyone in the forum who has experience with cash flow analysis and reconciliation? After a recent reconciliation, I need help resolving a large discrepancy between the P&L report and balance sheet. I would also like to review processes to ensure that transactions are properly recorded and recognized to avoid incurring future discrepancies. 

Thanks in advance for your assistance with this issue.

Best, 

Giselle


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(@anita-18)
Joined: 2 years ago
Posts: 5
 

The first thing you would want to do is make sure all bank accounts and credit card accounts are reconciled with the statements. (This includes Paypal and Square accounts.)  Next, you need to make sure all cash transactions are recorded. (Ie cash received in cash register, expenses paid in cash). Finally, it is also possible to reconcile every balance sheet account the same way you do with bank accounts.  If you have a bank account connected to your Quickbooks, or bookkeeping software, as long as you categorize each bank transaction when it comes in, this reconciliation process will go MUCH quicker. 

 

If you are analyzing cash flow, you can view the statement of cash flows, and the statement of profit and loss. For Quickbooks Online, You can view each category's transactions by clicking on the blue number for each category in the Quickbooks Online report.  The other thing you want to do is check the Trial Balance. The assets need to balance with the liabilities and capital. If they don't balance, you know one of these had something recorded incorrectly. You would also check the profit and loss to double check that the net profit or loss correctly equals the gross profit less expenses. 

This post was modified 7 months ago 2 times by Anita

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