Anytime there is uncertainty about where a financial transaction is to be recorded, it gets recorded in what’s called a “suspense account”, pending when the appropriate destination of the recording is determined. By year-end, huge unexplained balances could remain in the suspense accounts demanding for explanations. There are many unethical uses that suspense accounts could be put to in order to distort the true position of the accounts.

Day One

• Significance of Account Reconciliation
  • Correction of transaction mistakes
  • Tracking fraudulent activities
  • Problems with requisite accounting skills

• The Business and its Cash
  • Double entry bookkeeping method and reconciliation process
  • Clarifying Account Reconciliation and Bank Reconciliation

• Finalising Business Transactions
  • Account balance as per the bank
  • Account register as per general ledger
  • Lag time between posting and ending balances
  • The comparison process

• Bank Reconciliation Discrepancies
  • Direct transfers
  • Bank direct debits
  • Bank own errors
  • Unpresented instruments
  • Dishonoured cheques
  • Uncredited instruments

• Cashbook Errors
  • Oversights
  • Wrong figures
  • Beneficiary mix-up.

Day Two

• Analysis of Revenue Accounts for Accuracy
• Analysis of Expense Accounts for Accuracy
• Analysis of Miscellaneous Balance Sheet Accounts
• Preparation of Reconciliation Statement
  •  Daily report
  •  Weekly report
  •  Monthly report

• How you can Use Technology
  • How to do reconciliation in Excel
  • Bank reconciliation worksheet.

Day Three

• Defining a Suspense Account
• Suspense Account as a Temporary Storage
  • Payment with invalid or incomplete information
  • In-transit transaction
  • Pre-contract payment
  • Unappropriated budget expense
  • Transaction with legal contingent liability
  • Transaction issues that prevent their normal posting

• Inferences on Suspense Account
  • Weakens view on financial integrity
  • It can be a control risk
  • Demands quick clearance 

• Clearing Suspense Account 
  • Track transaction items quickly
  • Analyze by type of product
  • Analyze by aging category
  • Constant monitoring and reporting
  • Special identification of high-risk suspense items
  • Prompt reconciliation into the appropriate accounts