Proof of Cash (four-column bank reconciliation)

Cost: Free
System Requirements: Microsoft Excel® 2007 or later*
User Agreement: Read it Here
Creator: SpreadsheetShoppe.com
Proof of Cash
File Size: 124 kb
File Type: xls
Download File
+1 This Page
Picture
Proof of Cash Template
Picture
Proof of Cash Example
Description: Auditors love the idea of a four-column bank reconciliation also known as a Proof of Cash because of its ability to shed light on error, misstatements, and fraud.  The proof of cash reconciles the bank balance and general ledger over a specified period of time, whereas, the standard bank reconciliation reconciles the two at a specific date.  Need a template to complete this process monthly?  Download the monthly proof of cash template here.

To prepare a Proof of Cash:
  1. Start with a beginning balance, typically a year-end balanced previously reconciled
  2. Reconcile receipts
  3. Reconcile disbursements
  4. Complete it with the ending balance, typically the current year-end 
The actual completion of this reconciliation can be relatively complex and time consuming.  However, the process has been simplified with this template:
  • Helpful hints are included in comments for each cell (see red triangles in the picture to the right)
  • Check figures - each column must foot cross foot (meaning the columns must balance as well as the rows).  Items that don't add up correctly are automatically highlighted.
  • The dates entered at the top of the reconciliation automatically populate the rest of the reconciliation.
  • An example reconciliation has been included on the second tab of the download to be further utilized as a guide.
  • Tickmarks are easily added so your work can be documented. 
Picture
The notes will help guide you through the completion of this reconciliation.
Note, remember the data included in this example, is just that, example data.  There could be items included that are not relevant to your situation, or items missing that will be necessary for your reconciliation.  Additionally, assumptions have been made surrounding the nature of the reconciling items, changes in these assumptions could impact how the entry is recorded.  
blog comments powered by Disqus

Other Useful Tools & Excel Templates
Question or comments?  Reach us Here

* Note, utilizing the features of this excel template requires Microsoft Excel® 2007 or later - some of the attributes such as the shading, and other formatting are not compatible with earlier versions.