The Treasurer Duties of Reconciling a Checking Account

Whether you are an incoming Treasurer or this is a re-occurring role for you, the Treasurer duties of reconciling a checking account are very important to your financial success.

Mistakes & Fraud

There are two main reasons for reconciling a checking account. The first is to identify and correct errors. Let’s face it, mistakes happen! It is critical to have a close look at your records as money flows in and out of your account. The second reason to reconcile a checking account is to fight fraud. Unfortunately, like mistakes, fraud happens and you don’t want it to happen to your group.

How to Reconcile

Checking account reconciliation should happen once a month, usually when you receive your bank statement. If you wait too long to reconcile it can be more difficult to fix mistakes. To reconcile your checking account, follow these steps:

1. Use your receipts to ensure that all deposits and withdrawals have been properly listed in your checking account register.
2. Check off each transaction in your checking register that appears on your bank statement.
3. Add up all of the transactions that are recorded in your register that don’t appear on your bank statement. If it is a negative number, subtract it from your statement balance. If the total is positive, add it to your account balance.

If your reconciled balance doesn’t match your register, it is possible you incorrectly recorded a transaction. Oftentimes this happens with fees or interest credit. Figure out the discrepancy and search your bank statement for a matching amount. Double-checking your transactions should reveal the problem, but if it doesn’t you will need to look at each transaction. There could be a transposed figure say $38 instead of $83.

Confirm Transactions

Analyze your statement and look for differences between what you have recorded in your register and what is one the statement. If you think you made an error recording the amount of the check-in your register, request a copy of the check to confirm the amount. Many banks will offer this service when you bank online. You can simply click a link to a digital photo of the check. If the bank has recorded a transaction incorrectly, contact them to clear up the problem.

Get Help

A digital accounting software, like MoneyMinder, can help you with reconciling and protect you against fraud. MoneyMinder can make reconciling a checking account easy and transparent, which gives you, the Treasurer, an extra layer of protection.
Take your Treasurer duties seriously and reconcile your checkbook once a month. You will be glad that you did!

Sources: Money-Rates