Bookkeeping and Accounting All-in-One For Dummies, UK Edition

Chapter 4

Doing Your Banking

In This Chapter

Counting your business’s cash

Finalising the cash books

Reconciling your bank accounts

Posting cash-related adjustments

All business owners – whether the business is a small family-owned shop or a major international conglomerate – periodically like to test how well their businesses are doing. They also want to make sure that the numbers in their accounting systems actually match what’s physically in their shops and offices. After they check out what’s in the books, these business owners can prepare financial reports to determine the business’s financial success or failure during the last month, quarter or year. This process of verifying the accuracy of your books is called checking the books.

The first step in checking the books involves counting the business’s cash and verifying that the cash numbers in your books match the actual cash on hand at a particular point in time. This chapter explains how you can test that the cash counts are accurate, finalise the cash books for the accounting period, reconcile the bank accounts and post ...