Accurate and up-to-date accounting doesn’t have to be complicated if you take a few steps to keep your bank deposits current.
Here are a few accounting tips to facilitate tracking deposits and make sure you have adequate documentation to hand over to your accounting professional:
1) Separate deposits by preparing one for payments on account, another for daily cash sales, and another for miscellaneous receipts such as rebates on office products or refunds from overpayments.
2) Create a spreadsheet of all cash receipt journal entries by classification, date deposited, and amount.
3) If you track deposits on the computer, put the journal entry numbers of the cash receipts on the deposit slips.
4) Attach backup documents to your computer-generated entries, including check stubs, copies of checks, receipts for cash payments, deposit slips and anything else that might help identify the source of the funds if questions arise later. Also attach your deposit receipts from the bank and check off each deposit on the spreadsheet.
5) Reconcile deposits to your monthly statement. If some deposits are electronic and from outside sources, keep the mailed notices and match them to your statement. Once you’ve matched all the deposits, attach your spreadsheet to the bank statement.