bank reconciliation

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1> The procedures in preparing bank reconciliation are concisely presented as follows:

• Determine the balance per book and the balance per bank.
• Trace thecash receiptsto the bank statement to ascertain whether there are deposits not yet acknowledged by the bank.
• Trace thechecksissued to the bank statement to ascertain

2whether there are checks not yet presented for payment.

• The bank statement should be examined to determine whether there are bank credits or bank debits not yet recorded by the depositor.

3Watch out for errors. Errors are reconciling items of party who committed them.

1. 4Now when all the reconciling items have already been determined, a formal reconciliation may be prepared.

5Choose your method of reconciliation. There are several methods in reconciling the book balance and the bank balance. The adjusted balance method is preferred over book to bank method and bank to book method.

• Under the adjusted balance method, the book balance and the bank balance are brought to a correct cash balance that must appear on the balance sheet. The credit memos are always added to the book balance and the debit memos are always deducted from the book balance.
• Deposits in transit are always added to the bank balance and the outstanding checks are always deducted from the bank balance.
• These procedures are explainable due to the fact that under this method, the objective is bringing both balances to the correct amount as would appear in the balance sheet. The adjusted book balance and adjusted bank balance must balance or must arrive at the same amount.
• Credit memos have already increased the cash balance per bank but have no effect on the book balance for they are not recorded yet by the depositor. Consequently, the book balance is understated hence credit memos are added to the book balance.

1. 6Conversely, debit memos have already decreased the cash balance per bank but have not been taken up in the books of the depositor. As a result, the book balance is overstated in relation to the correct cash balance. It is but logical to deduct debit memos from the book balance.
2. • Deposits in transit have already increased the book balance but have no effect on the bank balance because the deposits are not yet taken up by the bank. The bank balance therefore is understated. To adjust it to the correct cash balance, deposits in transit are added to the bank balance.
   • Outstanding checks having been released already decreased the book balance however, not yet presented for payment, hence not taken up by the bank. The cash balance per bank is naturally overstated. They must therefore be deducted from the bank balance
   • 7Present a schedule that accounts for the differences between an enterprise’s cash balance as shown on its bank statement and the cash balance shown in its general ledger..

Descriptors like micro are relative and must be assessed against the working environments of the employees consuming learning. One size does not fit all.  To steal a title from one of Shakespeare’s great works, microlearning can be delivered as you like it.
At its essence, microlearning is learning that is consumable, bite-sized, and maintainable. It can also be characterized with the following “justs”…
Just enough
Just in time
Just where needed
Just the right format
Just the right access
Just big enough
Just small enough
Too much of anything is not always good. There is a downside of over-training and the analogy to over-eating is both scary and apt.

• Too much consumption at one time can be painful and stressful, and the value can be lost
• Too much consumption is wasteful. We can only absorb, retain, and utilize so much.
• No one wants to clean up after. It can be messy and exhausting.

Business is about productivity, not learning. The challenge is to help employees stay productive, always learning, and constantly informed.  By providing just enough information, just when needed, and just where needed, we don’t have to worry about losing or forgetting knowledge.  We always know where it is and we can get it any time we need to.
Microlearning can be a critical component of an effective workforce performance strategy because it satisfies immediate knowledge needs to enable the desired performance and compliance. As technologies advance, microlearning can also evolve to match the needs and pace of business.
Microlearning strategies facilitate knowledge acquisition, employee learning and performance support, when and where needed. It is just enough and always available should learners need to partake more as demanded. However, it is just as important to enable employees to learn where they are and to have learning be integrated tightly into their work.
Businesses need to be agile in order to survive in today’s MARKETS.  Employee enablement must be just as agile.  An effective microlearning strategy addresses the size of the assets to be consumed by the learner/worker as well as the relevance.  In other words, personalization of the content to match the business need is vital if the content is to be consumed, retained, and utilized.  Of course, size and format matter to exploit mobile devices and enable consumption anywhere and everywhere.
Business leaders and experts need the ability to serve their communities by creating channels of information relevant to those communities and messages that match their real-time need for information on the job. The breakthrough is to be enable this microlearning every minute of every day as needed as opposed to once a year or worse.
Just like with nutrition, sometimes an expert is better at prescribing what we need than we are in order to do our jobs well. SAP Communications Center by ANCILE is a new platform that allows business leaders, subject matter experts, and compliance managers to compose and push information to workers that matches the ‘justs’ – in time, enough, when needed and where needed.
The benefits of microlearning go far beyond the learner alone.  There is real, measurable value for the business.
For more conversation on the subject, stop by the ANCILE booth at SAP TechEd && d-code in Las Vegas from October 20-24.
You can also register here for our free webinar entitled, You’re communicating, but is your message being heard? coming up on November 19.
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