Bank reconciliation

[Mike or Penny Novack]

On 11/13/2017 1:14 PM, Cam Ellison wrote:
> On 13/11/17 09:45 AM, David Goodenough wrote:
>> Does no-one else have this problem?
>>

> I have dealt with this by setting up a separate Asset account for 
> receiving payments, similar to what you have. When a payment is 
> received, it goes into this "Payment" account, and then when the bank 
> deposit is made the appropriate amount is debited from the Payment 
> account. This process adds a step between receipt of the cheque (thus 
> acknowledging the invoice as paid) and depositing it.
Not JUST acknowledging as paid. The customer is NOT responsible for your 
delay in depositing a check. Nor does any government I know of consider 
the date you received money to be the date you got around to depositing 
it << the LEGAL date might in fact be the date of "constructive 
delivery" which is why the postmark on a mailed payment might be 
important >>

The common name for an account of this sort is "undeposited cash". 
Especially if you normally are depositing several payments/checks at one 
time you might prefer to always have them first go to "undeposited cash" 
(each can be split on the other side as needed) and then the deposit 
transaction itself is simple/clean/uncluttered.

BTW , another account of this sort often used by businesses is 
"suspense". Say you receive a check but there is uncertainty what it is 
for, the correctness of the amount, etc.

Michael D Novack