Title: Reconcile a bank statement.
Course: Operating the Farm Business (18301-III) > Section: Developing and Analyzing Agricultural Production Records

Reconciliation should include

- comparing deposits in the business records with deposits reflected in the bank statement
- adjusting the balance on the bank statement to the corrected balance
- accounting for deposits in transit
- deducting outstanding checks
- adding/deducting bank errors
- adjusting the cash account to reflect bank charges, non-sufficient funds checks, and errors in accounting
- comparing balances.

Process/Skill Questions:

- How is a checkbook balanced?
- What is the purpose of bank reconciliation? How can accounting software simplify this process?