Bank Reconciliation

It is very important that the bank reconciliation be completed monthly. In simple terms, this is reconciling or balancing the church accounting records to the bank statement or records.

The balance shown on the bank statement, plus any deposits the church has made, not yet reflected in the bank statement, minus any checks or payments made by the church that are still outstanding (not yet charged to the bank account) should equal the bank balance shown in the church records.

It is important to reconcile these records to discover any errors made in the bank statement or in the church accounting records. If the two records do not balance or reconcile, it is necessary to check for items on the bank statement that are not in the church records and vice versa or where the amounts differ for some reason. You may be required to cross check the two statements and mark off every item that is found in both records.