(Board member, not the Treasurer) The beginning Balance on the Cheque Register, where does that come from. I exported all the information to excel, look up this account but the cheque register beginning balance for January show 53.40 and the corresponding account shows -1485.52. I know that you really need more info but why would the cheque register beg balance and the yrstbal for that account not match
Also Should the totals from the cheque register and the income and expense statement not match (Same time period)??
Just trying to get a grip on what these reports are telling me
Thanks
Beginning Balance on cheque register
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Jeff
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The net income number at the bottom of the income & expense statement may not necessarily match the change in cash of the bank statement. You may have transactions that change cash that do not effect the I&E statement. For example:
If you pay down a liability i.e. mortgage payment (decrease cash, decrease liability) (Mortgage payments usually have an additional part to record the interest paid as an expense)
Transfer cash from checking to savings (decrease cash, increase savings)
Receive pament from a line of credit (increase cash, increase liability)
Buying something to be treated as an asset (decrease cash, increase asset)
You can also have transactions that effect the income & expense accounts that do not change the cash account. For example:
Recording depreciation (increase depreciation expense, increase accumulated depreciation)
Expense paid directly from an account other than your checking account i.e. savings/money market account (decrease savings, increase expense) (For the nitpickers, I know savings/money market account are technically cash accounts but the original question is why the check register for a particular cash account would not match the i&e statement.)
Recognition of deferred income (decrease liability, increase income) (This is rare but have seen this in churches books)
There are more scenarios the point is the change in the bank account does not necessarily mirror the change in the I&E statement.
If you pay down a liability i.e. mortgage payment (decrease cash, decrease liability) (Mortgage payments usually have an additional part to record the interest paid as an expense)
Transfer cash from checking to savings (decrease cash, increase savings)
Receive pament from a line of credit (increase cash, increase liability)
Buying something to be treated as an asset (decrease cash, increase asset)
You can also have transactions that effect the income & expense accounts that do not change the cash account. For example:
Recording depreciation (increase depreciation expense, increase accumulated depreciation)
Expense paid directly from an account other than your checking account i.e. savings/money market account (decrease savings, increase expense) (For the nitpickers, I know savings/money market account are technically cash accounts but the original question is why the check register for a particular cash account would not match the i&e statement.)
Recognition of deferred income (decrease liability, increase income) (This is rare but have seen this in churches books)
There are more scenarios the point is the change in the bank account does not necessarily mirror the change in the I&E statement.