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Bank Reconciliation Statement

This document discusses the importance of bank reconciliation statements for clubs and organizations. The bank reconciliation statement reconciles the balance in the bank account with the balance in the organization's financial records, as there can be timing differences between bank transactions and financial records. It is essential for committee members to receive and review the bank reconciliation statement at monthly meetings to ensure the accuracy of financial reporting and identify any potential issues.

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Abdul Rehman
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109 views

Bank Reconciliation Statement

This document discusses the importance of bank reconciliation statements for clubs and organizations. The bank reconciliation statement reconciles the balance in the bank account with the balance in the organization's financial records, as there can be timing differences between bank transactions and financial records. It is essential for committee members to receive and review the bank reconciliation statement at monthly meetings to ensure the accuracy of financial reporting and identify any potential issues.

Uploaded by

Abdul Rehman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Bank Reconciliation Statement

This information sheet is adapted from the publication Active Australia


Club/Association Management Program Financial Management, produced by
the Australian Sports Commission. All Committee members both existing and
new should read these areas.

Purpose
The bank reconciliation statement is an essential tool available for committee
members to ensure that financial information being reported to them is
accurate.
It is an explanation of the variance between the bank statement and the books
of the club.
It provides proof as to the value of monies held by the club in its bank
account(s) at reporting time.
The treasurer is required to complete the reconciliation and its completion is
accounting best practice. The reconciliation should include a copy of the most
recent bank statement.
Committees should insist that it is tabled at each monthly meeting and is
included within the minutes of the meeting.
The failure by the committee to receive a statement is an indication that all
may not be well with the finances. It should not be permitted to continue.

Reason for reconciliation


The reconciliation is made necessary because club books and transactions do
not always exactly equate with bank records and the major reason for this is
timing of events. There can be many reasons for this happening and all are
legitimate. For example payees do not always clear cheques drawn by the
club immediately (some can take months to be presented). Banks can close
off their transactions on different days to the club; deposits may be in transit.

Form of reconciliation
All accounting software packages have a reconciliation process within their
system and so clubs that use such systems just need to follow the process
and the reconciliation will be generated automatically.
For those clubs who have not yet moved to software packages you can
access a template that can be used to effect their own reconciliation.

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