Question

Discussion Question 1:

Bank Reconciliations

What advantages and disadvantages do you think there are to preparing a bank reconciliation in QuickBooks vs. preparing it manually?
Be sure to list at least 2 pros & 2 cons and support them with explanations.

Discussion Question 2:

Budget

As a manager, why do you think you would need to prepare a budget at the end of the year before it will go into effect? In other words, why would you prepare a department budget in November of 2018 for the 2019 calendar year?
Then, how would you use this budget during 2019 that may help you make decisions about the company?

Answer 1

bank reconciliation in QuickBooks

• 1 Advantages of Bank Reconciliation.
• 1.1 Avoiding Mistakes.
• 1.2 Fraud Detection.
• 1.3 Tracking Account Fees.
• 1.4 Keeps the Account in Good Standing.
• 1.5 Receivables Tracking.
• 2 Disadvantages of Bank Reconciliation
• . 2.1 Uncleared Cheques Can Create a Mis-match.
• 2.2 Changes in Dates Recorded by Banks
• . 2.3 Too Many Transactions.

bank reconciliation preparing it manually advantages

Performing bank reconciliations helps you spot fraud and reduce the risk of transactions that can cause late fees and penalties.

• Error Detection. A bank reconciliation helps you spot accounting errors common to any business. ...
• Fee and Interest Tracking. ...
• Fraud Detection. ...
• Receivables Tracking. ...
• Transaction Status Updates.

Developing a department budget requires a thorough understanding of the process and the department in question. Consider a departmental budget as a spending plan for the upcoming fiscal year. When preparing the preliminary paperwork, factor in variables related to income and expenses, allowing for a cushion if projected income figures fail to materialize. A sound, workable budget is only as good as the numbers input by the architects of the final product.

Set reasonable objectives for the upcoming fiscal year. Preliminary figures should include expectations for the department’s immediate future. While these initial calculations tend to border on the optimistic side, make an effort to stay realistic with the numbers forecast. Remember that budgets are a work-in-progress, which require tweaking throughout the year, so it is better in the long run to submit sensible expectations.

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