How to Compare the Cashbook to the Nominal
To ensure your cash book and nominal ledger reconcile, follow these steps:
Obtain the Nominal Balance:
- Navigate to the Nominal Ledger and select Ledger Reports.
- Always run the report to the last period of the year (e.g., period 12) to account for any forward-dated entries.
- Once the report is generated, filter by the relevant bank nominal code (e.g., 0.0.60.6), or any other bank code you're reviewing if multiple cashbooks are in use.
- Note the Year-to-Date (YTD) figure for the nominal balance.
Obtain the Cashbook Balance:
- Go to the Cashbook and select Reconcile.
- Make a note of the Opening Balance.
- Sum up the figures from the Paid In and Paid Out columns on both the unreconciled and reconciled tabs, then add this total to the opening balance.
Tip: If the report contains many transactions, you may find it easier to export the data to a spreadsheet to work with the In and Out columns.
Compare the Balances:
- The total cashbook balance should match the nominal balance from the Ledger Report (also known as the Trial Balance).
Important: It is recommended to perform this review each month to ensure the balances reconcile. If there is a discrepancy, reviewing a single month is much easier than analysing a longer period to identify where the imbalance occurred.