Question
Generally, we do not expect the amount in the clients accounting system for a cash account (e.g., operating cash balance as of 12/31/18 = $508,219.33)
Generally, we do not expect the amount in the clients accounting system for a cash account (e.g., operating cash balance as of 12/31/18 = $508,219.33) to match the amount that the financial institution confirms (e.g., our records show that your clients 12/31/18 bank account was $478,921.54). Why do we generally not expect the financial institutions to confirm the exact amount reported in the clients accounting system? Another way of asking this question is: Why are there reconciling differences between the client and financial institutions records?
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