Bookkeeping

The bank balance is an external view of the company’s financial status and can be accessed through bank statements or online banking platforms. The balance on June 30 in the company’s general ledger account entitled Checking Account is the book balance that pertains to the bank account being reconciled. This is the case when there …

Reasons why the bank balance differs from the book balance Read More »

Reconciling bank balance and book balance is also key for financial planning and budgeting. Accurate financial records enable businesses to forecast future cash flows well, make strategic investments, and plan for possibilities. Without proper reconciliation, businesses may not know how much money they have, leading to wrong budgets and bad decisions. The book balance is …

The difference between bank balance and book balance Read More »