Each and every business is unique to what and how much it sells, what types of customers it attracts, inventory it sells, and expenses required to keep the business running efficiently and effectively.  However, in terms of the dates your financial data is dated, all businesses share a commonality. All businesses must pay close attention to their financial data dates. There are some basic requirements when you record your financial data (source documents) into your accounting software system.

1. First, you must make sure the dates of your receipts of inventory are specifically put into your books on the date that they were actually received into inventory at your warehouse.  This is most important during month end and at the beginning of the month. If the inventory is not received correctly on the books as it was at the warehouse, your inventory totals will be off for the month end count, and will be reflected in the next month's count inaccurately, as well.

2. Make sure that all sales deposits are recorded on the books when they were actually deposited into the bank.  If not, your bank reconciliation will be off by the sales that were not dated correctly. This is also most important during  month end when deposits can be accidentally recorded into the next month, making reconciliation difficult.

3.Finally, any checks paid to accounts payable invoices should be batched correctly into the month that they were actually paid when entering them in the books.  If not, the bank reconciliation again will be off by the portion of invoices paid that were put into the wrong month.

These tips should help to clarify discrepancies in inventory counts, and reconciliations for purposes of keeping records accurate.

Copyright Jeanine Pfeiffer

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