Bank fees or charges can be properly accounted for in the reconciliation process by following these steps:
1. Keep Track of Bank Fees
It is important to keep a record of all bank fees or charges that are incurred by the account. This can be done by reviewing bank statements regularly and noting down any fees that have been deducted from the account.
2. Separate Bank Fees from Other Transactions
When reconciling the bank statement, it is important to separate bank fees from other transactions. This will help in accurately matching the transactions on the bank statement with the transactions in the accounting records.
3. Reconcile Bank Fees in the Reconciliation Process
When reconciling the bank statement, make sure to include bank fees as part of the reconciliation process. Compare the bank statement with the accounting records and ensure that all bank fees are accounted for.
4. Adjust Accounting Records for Bank Fees
If any bank fees are found to be missing or incorrectly recorded in the accounting records, adjustments should be made to correct the discrepancies. This can be done by adding or subtracting the amount of the bank fees from the accounting records.
5. Review Reconciliation Reports
After reconciling the bank statement and accounting records, review reconciliation reports to ensure that all bank fees have been properly accounted for. This will help in identifying any discrepancies and addressing them promptly.
6. Document Bank Fees for Audit Purposes
It is important to document all bank fees that have been accounted for in the reconciliation process. This documentation will be useful for audit purposes and will provide a clear trail of how bank fees have been handled.
7. Use Accounting Software for Reconciliation
Consider using accounting software to streamline the reconciliation process and accurately account for bank fees. Many accounting software programs have features that can help in matching bank transactions and automating the reconciliation process.
8. Communicate with Bank for Clarification
If there are any discrepancies or questions regarding bank fees, do not hesitate to communicate with the bank for clarification. Banks can provide additional information or insights that can help in properly accounting for bank fees.
9. Monitor Bank Fees Regularly
Lastly, make it a habit to monitor bank fees regularly and stay informed about any changes in fee structures. By staying proactive, you can anticipate and account for bank fees more effectively in the reconciliation process.