Bank Reconciliation Report

[office@firstwest]

Hello -
Even though our bank reconciliation difference is "0" on our December reconciliation report for our checking account, our church auditor wants to know why the "Account 1110 balance" is different (way different) than the 1110 balance on our yearend Balance Sheet. Here is what the reconciliation shows:

Bank statement balance 30,555.85
-Outstanding checks 30,065.77
+Outstanding deposits 31,082.07
=Adjusted bank balance 31,572.15
Account 1110 balance 31,572.15
Difference 0

Of course the account was reconciled on a date other than December 31 but I cannot recreate that 31,572.15 Account 1110 balance. Can anyone help by showing what formula or report I can use to do this?
(BTW, this is for 2021 and if I generate a checking balance today for December 31, 2021, it remains the same as the original Balance Sheet showed.)

Thank you! I hope I stated my question clearly!

[NeilZ]

Hello -
Even though our bank reconciliation difference is "0" on our December reconciliation report for our checking account, our church auditor wants to know why the "Account 1110 balance" is different (way different) than the 1110 balance on our yearend Balance Sheet. Here is what the reconciliation shows:

Bank statement balance 30,555.85
-Outstanding checks 30,065.77
+Outstanding deposits 31,082.07
=Adjusted bank balance 31,572.15
Account 1110 balance 31,572.15
Difference 0

Of course the account was reconciled on a date other than December 31 but I cannot recreate that 31,572.15 Account 1110 balance. Can anyone help by showing what formula or report I can use to do this?
(BTW, this is for 2021 and if I generate a checking balance today for December 31, 2021, it remains the same as the original Balance Sheet showed.)

Thank you! I hope I stated my question clearly!

What are they comparing the balance amount to? What balances are they looking at? Your reconciliation shows that as of the date of the bank statement, they match. Remember, the bank statement only shows checks and other transactions that have cleared the bank. The system reflects checks that have been written, and deposits that have been made but have not cleared the bank.

[office@firstwest]

They are comparing the balance amount to the checking account (1110) balance reported on the year end balance sheet. They want me to show how the "Account 1110 balance" on the reconciliation report is $31,572.15.

The checking account balance on Dec. 31 was $6892.70. Three weeks later (when it was reconciled with the bank statement) it was $31,572.15. The auditor wants me to show why.

Thanks again.

[NeilZ]

They are comparing the balance amount to the checking account (1110) balance reported on the year end balance sheet. They want me to show how the "Account 1110 balance" on the reconciliation report is $31,572.15.

The checking account balance on Dec. 31 was $6892.70. Three weeks later (when it was reconciled with the bank statement) it was $31,572.15. The auditor wants me to show why.

Thanks again.

Your 'auditors' should know that the 'checking account balance' is the 'live' balance of the account, it will show any checks and deposits that are in the system and posted. The reconciliation balance is the balance ON THE DATE of the bank statement.

Three weeks later you have had deposits made, probably end of year deposits of contributions that didn't make it in by Dec 31st, along with regular Sunday deposits and any checks that have not yet cleared the bank.

The system will show the live balance at the time, and after the reconciliation, will reflect on the reconciliation report the outstanding deposits and checks not shown on the bank statement.

If you do a Balance Sheet right now, what does it show for the account balance?

[office@firstwest]

If I do a Balance Sheet right now, it will show the same balance it did on the original Dec. 31, 2021 statement: $6892.70.
I'm not sure why they want to track the additions and subtractions made to the account between Dec. 31 and the date of reconciliation.
I will show them your post and that should help. Thank you for taking the time to answer.

[NeilZ]

If I do a Balance Sheet right now, it will show the same balance it did on the original Dec. 31, 2021 statement: $6892.70.
I'm not sure why they want to track the additions and subtractions made to the account between Dec. 31 and the date of reconciliation.
I will show them your post and that should help. Thank you for taking the time to answer.

I'm talking about a balance sheet as of today, or the end of January when you did the reconciliation.