Bookkeeping – Bank Reconciliation – Expenses not Reimbursed to me by 30 June – Can it Reconcile – and to 30 June?


Businessman with question
Client Question

Client asked: “In June, I entered June related expenses but wasn’t able to reimburse these amounts from the bank account (low cash avail) until July.  Therefore June 30th bank account doesn’t reconcile with computer accounts June 30th.  However the accounts will reconcile now in July. Last reconciliation was 6/6/12.  Is it alright for the accountant if I do the next reconciliation from 7/6/12 to 2/8/12 for the end of year requirements or is it a must that both MYOB and Bus Bank Account reconcile exactly on 30/6/12?… and if so, how can I adjust this?”

Answer: “It won’t matter if expenses were not reimbursed by 30 June – they will sit there and wait until they appear on the bank statement, when you were able to pay, even if it’s the next month. They will be claimed in the year ending 30 June. Yes you need to reconcile to 30 June – that is the year end, and that is the date to balance to – all entries in, all sales, all purchases and all expenses paid. On the bank statement, rule off at 30 June and reconcile to there. (Or use the financial year end that relates to your country/region).”

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