Why does my bank reconciliation not tie?
A bank reconciliation usually fails to tie because one item is on the wrong side, omitted, or corrected in the wrong direction.
Start by separating the bank side from the book side. Deposits in transit, outstanding checks, and bank errors adjust the bank statement balance. Bank service charges, NSF checks, interest earned, automatic bank transactions, and company recording errors adjust the book balance.
If the adjusted bank balance and adjusted book balance do not agree, do not force the answer. Reclassify each item and check whether it requires a journal entry.
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