Bank and books do not match
Structure reconciliation so exceptions are easy to find.
01 · What is usually happening?
The bank statement shows one balance and the books show another. Reconciliation is done at month end, in a hurry, and the same small differences return every month.
Nobody trusts the cash number until the accountant has spent two days on it.
The question people usually ask“Why do the bank and the books disagree?”
The more useful question“Which entries are missing or wrong, and who should have recorded them?”
02 · Common causes
- 01Receipts are recorded only when someone remembers
- 02Cheques and transfers are entered with delay
- 03Bank charges and interest are not entered until the end
- 04Payments to suppliers are recorded against the wrong invoice
- 05Reconciliation happens once a month
- 06Cash payments are not receipted
03 · What to check now0 of 6 checked
04 · What good looks like
- 01Receipts and payments are entered the day they happen.
- 02Bank charges are entered from the statement weekly.
- 03Reconciliation is done weekly.
- 04Unmatched items older than a week are chased.
- 05Cash payments carry a receipt.
05 · Where this connects
This rarely stays in one department
What it can lead to: Cash decisions are made on a number nobody trusts.
Start from a problem
Work flows left to right, top to bottomKEYMost important for manufacturing
These support every part of the business
Problem
Bank and books do not match
Usually connected to
How it spreads
- Finance
What it can lead to: Cash decisions are made on a number nobody trusts.
lamplamp could match bank lines to invoices and payments each day.
06 · Related processesInvoice to payment
Related guidesHow to use AI without replacing your ERP
08 · lamp
lamp could keep this moving
lamp is not available yet. These are things it is being built to do.
- lamp could match bank lines to invoices and payments each day.
- lamp could list the items that do not match, with the likely reason.
- lamp could ask the person who made the entry to fix it.
- lamp could show the true cash position every morning.
Does your business handle this differently?Tell us what we have missed: a cause, a check, or a better way of handling it.
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