Adjusted bank balance
$10,800- Bank statement
- $10,400
- Add deposit in transit
- + $1,200
- Subtract outstanding check
- − $800
$10,400 + $1,200 − $800 = $10,800 USD
Bookkeeping / Practical Accounting Resources
Financial Checklists &
Accounting Tools.
Follow a financial close, review reconciliation differences, and explore receivables and payables. Choose the resource you need, using fictional examples and practical steps.
A more organized close
Your Financial Close, Step by Step
Turn the close into a clear sequence. Work through each period, understand the purpose behind every step, and keep the next action in view.
Monthly Close
0 of 14 complete. 14 remaining. 0% complete.
- Not complete
Why and how
Why it matters. Reports are only useful when the period's activity is complete.
How to approach it. Compare bank and card activity, invoices, bills, and receipts with the ledger through the month-end cutoff. Enter missing items once and retain their source documents.
- Not complete
Why and how
Why it matters. Unassigned activity can distort expense categories and hide amounts needing review.
How to approach it. Open the uncategorized transaction list. Check each item's receipt and business purpose, assign the appropriate account, and flag anything that needs clarification.
- Not complete
Why and how
Why it matters. Reconciliation connects recorded cash to independent bank evidence.
How to approach it. Match the ledger to each month-end bank statement. Identify deposits in transit, outstanding checks, and missing bank entries, then document how the adjusted balances agree.
- Not complete
Why and how
Why it matters. Card balances and expenses should reflect the statement, not duplicate or omitted charges.
How to approach it. Match charges, refunds, payments, and fees to the statement. Review unmatched items and record approved corrections with supporting documentation.
- Not complete
Why and how
Why it matters. Aging shows which recorded customer balances are still collectible and need attention.
How to approach it. Run aging as of month-end and compare it with the receivables ledger. Check credits, unapplied receipts, and overdue balances before preparing a follow-up list.
- Not complete
Why and how
Why it matters. Consistent follow-up helps clarify payment timing and resolve disputed balances.
How to approach it. Confirm invoice delivery and payment history. Contact overdue customers courteously, record agreed next steps, and update the collection notes without treating promises as cash received.
- Not complete
Why and how
Why it matters. Aging identifies obligations and helps prevent duplicate or missed payments.
How to approach it. Compare open vendor bills with the payables ledger at month-end. Check due dates, credit notes, duplicate invoices, and balances needing vendor confirmation.
- Not complete
Why and how
Why it matters. The close needs a clear distinction between unpaid obligations and payments already made.
How to approach it. Review unpaid bills against vendor statements and payment records. Verify approvals and payment dates, then resolve unmatched payments or missing invoices.
- Not complete
Why and how
Why it matters. Payroll expenses and related liabilities should belong to the correct reporting period.
How to approach it. Compare payroll summaries with ledger entries, bank payments, and liability balances. Investigate differences with the payroll provider and retain approved supporting records.
- Not complete
Why and how
Why it matters. Timing adjustments align expenses with the period receiving the benefit.
How to approach it. Review prepaid schedules and unpaid costs incurred during the month. Calculate the period's amounts using the business's accounting policies and document approved entries and any reversals.
- Not complete
Why and how
Why it matters. Account-level review catches unexpected balances that transaction matching alone may miss.
How to approach it. Review the trial balance and supporting ledger detail. Compare important accounts with schedules, investigate unusual signs or movements, and resolve unexplained balances.
- Not complete
Why and how
Why it matters. A consistent report set turns a reviewed ledger into useful management information.
How to approach it. Prepare the income statement, balance sheet, and relevant cash and aging summaries from the reviewed ledger. Confirm the reporting dates and check that supporting balances agree.
- Not complete
Why and how
Why it matters. Unexpected changes may reflect business activity, timing differences, or recording errors.
How to approach it. Compare results with the prior month and budget. Trace material differences to source transactions, correct confirmed errors, and explain genuine operating changes.
- Not complete
Why and how
Why it matters. A documented close creates a reliable handoff and a record of what was reviewed.
How to approach it. Save reconciliations, reports, and approved adjustments. Record reviewer sign-off, unresolved items, and the close date; apply the business's period-lock procedure where appropriate.
These are educational examples of common procedures. Actual tasks depend on the business and its accounting practices. Progress stays in memory for this visit only. Nothing is saved or transmitted.
The evidence behind your balance
Bring both sides into balance.
Match what is already recorded. Review what has not cleared. Post what is missing. Each step answers a different question about cash.
Illustrative, fictional December 2026 records. No live bank connection or financial data collection.
One account. One cutoff: December 31, 2026. The statement ends at $10,400 and the unadjusted books at $9,500. These balances already include each side's recorded transactions. This is a separate teaching example, not the financial dashboard's cash account.
How the starting balances fit together
Both records began December at $6,500. The three common transactions have a net cash effect of $2,600.
Bank statement: $6,500 + $5,000 − $1,500 − $900 + $1,400 − $120 + $20 = $10,400.
Unadjusted books: $6,500 + $5,000 − $1,500 − $900 + $1,200 − $800 = $9,500.
The raw balance gap is $900. After known bank timing items, the initial residual is $1,300. Only posting the missing book entries closes that residual.
Adjusted book balance
$9,500- Unadjusted books
- $9,500
- Customer collection (not posted)
- + $0
- Bank fee (not posted)
- + $0
- Bank interest (not posted)
- + $0
$9,500 + $0 + $0 + $0 = $9,500 USD
Residual difference (USD)
$1,300Adjusted bank minus adjusted books
Resolve missing book entries to bring the adjusted balances together.
Choose corresponding bank and book records to check their evidence. Residual difference: $1,300 USD.
Match existing records
Compare reference, amount, and cash direction. A match verifies evidence; it does not add or subtract cash.
0 of 3 pairs matched. 3 unmatched.
- DEP-1203 · Dec 3
Customer deposit
Bank $5,000 in = books $5,000 in
Unmatched - PAY-1208 · Dec 8
Office rent
Bank $1,500 out = books $1,500 out
Unmatched - PAY-1217 · Dec 17
Supplier payment
Bank $900 out = books $900 out
Unmatched
Review known timing items
Both are already in the books. Their bank adjustments are included from the start. Reviewing evidence does not create a missing record or change cash.
0 of 2 timing items reviewed.
Deposit in transit
+ $1,200Bank-side adjustment only
Why it is outstanding
Already recorded in the books on Dec 31, but not on the December bank statement. Add it to the statement balance for reconciliation only. Do not record the receipt again.
Evidence: Deposit slip DIT-1231 for $1,200; subsequent bank credit on Jan 2, 2027.
Outstanding check
− $800Bank-side adjustment only
Why it is outstanding
Already deducted in the books on Dec 30, but not yet cleared by the bank at month-end. Subtract it from the statement balance for reconciliation only. Do not record the payment again.
Evidence: Check register CHK-1230 for $800; subsequent bank debit on Jan 4, 2027.
Post missing book adjustments
These three bank items are not yet in the books. Checking a posting changes the book balance; unchecking reverses it so you can replay the activity.
0 of 3 book adjustments posted.
Customer collection
+ $1,400Bank item not recorded in books
View adjustment evidence
The bank received a customer payment that is missing from the books. Increase book cash and reduce accounts receivable by the same amount.
Evidence: Dec 22, receipt COL-1222, bank credit of $1,400.
Bank fee
− $120Bank item not recorded in books
View adjustment evidence
The bank deducted a fee not yet recorded in the ledger. Record bank fee expense and reduce book cash.
Evidence: Dec 28, statement fee FEE-1228, bank debit of $120.
Bank interest
+ $20Bank item not recorded in books
View adjustment evidence
The bank credited interest not yet recorded in the ledger. Increase book cash and record interest income.
Evidence: Dec 31, interest INT-1231, bank credit of $20.
Receivables, payables & collections
Know what is due.
Plan what comes next.
Aging turns outstanding balances into clear follow-up priorities. See what customers owe, when vendor bills are due, and how each action affects available cash.
Year-end snapshotIllustrative figures. All records are fictional.
Accounts receivable$32,000.005 customer invoices · Open year-end balance
Accounts payable$18,000.004 vendor bills · Open year-end balance
Cash at year-end$292,000.00Same closing cash as the financial overview
Aging as of
Customer balances & follow-up
Receivables: all aging categories. 5 records · $32,000.00 outstanding.
Check a balance to preview collecting it in your cash plan. This does not send a payment or reminder.
- INV-101Open
Sample Customer A
- Invoice amount
- $6,000.00
- Already paid
- $0.00
- Outstanding balance
- $6,000.00
- Due date
- Days overdue
- 0 days
- Aging category
- Current
Follow-up priorityNot yet due. Confirm invoice delivery.
- INV-102Partially paid
Sample Customer B
- Invoice amount
- $10,500.00
- Already paid
- $2,000.00
- Outstanding balance
- $8,500.00
- Due date
- Days overdue
- 19 days
- Aging category
- 1 to 30 days overdue
Follow-up priorityConfirm the remaining balance and send a courteous reminder.
- INV-103Overdue
Sample Customer C
- Invoice amount
- $7,500.00
- Already paid
- $0.00
- Outstanding balance
- $7,500.00
- Due date
- Days overdue
- 46 days
- Aging category
- 31 to 60 days overdue
Follow-up priorityReview prior correspondence and request a payment update.
- INV-104Partially paid
Sample Customer D
- Invoice amount
- $7,000.00
- Already paid
- $1,000.00
- Outstanding balance
- $6,000.00
- Due date
- Days overdue
- 77 days
- Aging category
- 61 to 90 days overdue
Follow-up priorityReconcile customer records and agree on the next follow-up.
- INV-105Overdue
Sample Customer E
- Invoice amount
- $4,000.00
- Already paid
- $0.00
- Outstanding balance
- $4,000.00
- Due date
- Days overdue
- 112 days
- Aging category
- Over 90 days overdue
Follow-up priorityReview the outstanding documentation with the business owner.
From balances to available cash
Build a cash plan.
Start with Dec 31, 2026 closing cash. Preview settling the selected outstanding balances next.
0 collections and 0 payments selected. Incoming $0.00, outgoing $0.00, available cash $292,000.00. Remaining receivables $32,000.00 and payables $18,000.00. 0 selected records are outside the current view. Selections stay in your plan across modes and filters.
- Year-end cash$292,000.00Opening point
- Collections+$0.00Selected customer balances
- Payments−$0.00Selected vendor balances
- Available cash$292,000.00After selected actions
- Remaining receivables
- $32,000.00 Year-end AR less selected collections
- Remaining payables
- $18,000.00 Year-end AP less selected payments
Cash movement is not a second recognition. Collecting an existing receivable increases cash and reduces accounts receivable. Paying an existing payable reduces cash and accounts payable. Neither action records the original revenue or expense again. Each selection uses only the unpaid balance, not the original invoice or bill amount.
Preview only. No bank connections, messages, or transactions. Your selections are not saved or transmitted.