Accounting procedures



1.


Cheques are received from customers to pay for goods and services purchased

Invoices are sent to business customers requesting payment for goods and services supplied

Invoice terms are generally 21 or 28 days, which is the period of time that the customer has to sent in a cheque for payment



2.

Balance statements from the bank against total cheques written and total cheques received at least once per month.

There will be substantial timing differences.

It may not be practial to check transactions individually, it may be necessary to use systems checks to check one file against another.



3.

bank account
	
    reconciliation


	opening cash balance				1.

	total cheques written				2.		sent to pay for items

	total cheques written and cleared		3.		sent and the funds withdrawn from the account

	total cheques banked				4.		received from customers and deposited at the bank

	total cheques banked and cleared		5.		funds transferred into the account

	cash withdrawn					6.

	cash deposited					7.

	closing cash balance				1. - 3. + 5. - 6. + 7.



3.


Monthly statements


	Total sales			Money charged to customers

	Total expenses

	Opening cash balances

	Closing cash balances





Notes


Include some basic systems checks to ensure that customers are not charged twice for the same transaction, and

to ensure that charges are not missed.



