To properly reconcile a financial statement, it is crucial to account for any deposits made after the statement's closing date. The correct action to take is:
Deposits made after the closing date of the statement should be added to the closing balance of the statement.
This ensures that your records accurately reflect the total amount available, including any funds that may have been received but not yet accounted for in the statement. Here are the steps detailing why this is the right approach:
1. Identify Deposits Made After the Closing Date:
- Review all transactions and spot those deposits that occurred after the statement's closing date.
2. Understand the Impact of Late Deposits:
- Recognize that these deposits have not yet been included in the closing balance of the statement.
3. Adjust the Closing Balance:
- Add the total of these late deposits to the closing balance of your financial statement. This adjustment will reflect the true available balance.
By ensuring that all deposits made after the statement's closing date are added to the closing balance, you maintain accurate and up-to-date financial records. This practice avoids discrepancies between your records and the actual funds available.
