How To

Bank Reconciliations – two sided

  1.   Pick up the bank statement, verify month ending.
  2.   Verify by matching cancelled cheques to bank statement.
  3.   Verify deposit book to bank statement.
  4.   Write down the closing balance per books and bank at top of page beside each other.
  5.   Make note of any deposits made not recorded by bank under balance per bank.
  6.   Add to balance.
  7.   Verify cancelled cheques to book entry.
  8.   List any cheques entered but not returned and deduct from bank balance.
  9.   Verify non cheque items on bank statement have been recorded. If not mark down these on        the paper.
  10.   Verify carry forward items from previous month have cleared, if not mark them down on        bank reconciliation.

Write up a a set of books

  1.   Gather up all the bank statements.
  2.   Gather up all the cash paid out items, sort them by category and add them up, attach tapes        to each pile.
  3.   Using QuickBooks or Simply Accounting…
  4.   Select a chart of accounts in accounting program.
  5.   Record opening blank balance – debit bank credit shareholder.
  6.   Enter all the cheques and deposits in chronological order.
  7.   Bank debit for deposit, credit to sales.
  8.   Cheques and bank debits (non cheque items) debit expense credit bank.
  9.   Cash paid outs: enter debit expense and credit to shareholder/owner.
  10.   Do a back up.
  11.   Bundle up the package with last years tax return and go to see an accountant.

Congratulations you just saved at least a few hundred dollars.

Advanced Shoe Box

For those brave souls who pay cash for everything or credit cards, and used to keep records on back of cigarette packages until they quit smoking…

  1.   Get a receipt for everything.
  2.   Keep them and bring them home, do not leave on dash of truck.
  3.   Empty your pockets before you wash the pants, put receipts in box.
  4.   If no shoe box, treat yourself to a new pair.
  5.   Once per week, sort out receipts by category and add them up with the cheap calculator       you bought when you got your shoes.
  6.   Attach adding machine tape to receipts along with a note of how much you made that week.
  7.   Put in shoe box.
  8.   At year end bribe one of your children to write down on a sheet of columned paper the total        per week.

Congratulations you will be a financial planner soon.
Take this to your accountant with the promise to do a better job next year.

Financial planning

Always spend your money AFTER you earn it.
If you must, get a credit card to pick up the bumps.


Weekly, write down your income, less savings.


Weekly allocate your spending:

  • 1/4 rent
  • utilities, telephone, cable etc
  • set asides
  • loan payments
  • your bills

Write down your anticipated expenses.

Subtract your income from your spending.

Left over for me _____

If you have a sudden surge in income, clean up your bills first, buy the needed items to strengthen your success, blow the balance as a reward to yourself… only if you must.

Servicing all of British Columbia plus the Northwest US

T. Jarrold & Associates, Since 1977
415-9672 134 St, Surrey, BC V3T 5L5
Phone: 604-437-1978
E-mail: Contact Us