How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Megan C Your Own Question

Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 14005
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
23669918
Type Your Finance Question Here...
Megan C is online now
A new question is answered every 9 seconds

Proof of cash. Im preparing my first proof of cash worksheet.

Resolved Question:

Proof of cash. I'm preparing my first proof of cash worksheet. I need verification that I am setting it up right, pulling the information from the correct reports, etc. Company's cash balance for books has been way off from the bank for years. I'm trying to reconcile starting with the 2013 year. I have a spreadsheet that I can share with you to see what I have done so far. Thank you.
Submitted: 10 months ago.
Category: Finance
Expert:  Megan C replied 10 months ago.

Megan C :

Thanks, XXXXX XXXXX requesting me.

Megan C :

You can send the file using the paperclip icon. Please remove all identifying information as this is posted on the web

Customer:

Thank you. Just one second while I remove identifying info.


 

Megan C :

Okay thanks

Megan C :

Thanks

Megan C :

It looks good. Looks like you have a mess on your hands, though lol

Megan C :

Do you need anything else today, Terry?

Customer:

Well, I lost connection with the chat for a few minutes there. Were you able to view the file I sent?

Megan C :

Yes I was

Megan C :

And I said that it looked good...but looked like you had a mess on your hands!

Customer:

I don't see that in the chat window. I have a few questions to clarify what I am doing, if you don't mind.

Megan C :

That's no problem at all

Customer:

Balance per Books: January receipts - I took that from the total of debits in the G/L cash account for January, but I'm thinking it should have come from the cash receipts report?

Megan C :

There should be a cash receipts report...but if they aren't keeping their books up, then it may not be accurate

Customer:

It may not be accurate, but that should be where I pull that number from, not the total of the debits in the G/L account, correct?

Megan C :

That's right, because there may be other debits in there like interest revenue etc

Customer:

The corrected balance per books for Jan. receipts agrees with the cash receipts report, after I subtract the errors and adjustments. But that was starting with the total debits like I said. So if I start with the cash receipts report then I would not show those adjustments in column 2, correct/

Megan C :

That is correct

Customer:

Apply the same scenario to the Jan disbursements. On the worksheet you have, I started with the total of all credits in the G/L cash account. I'm thinking that was not correct. I should take the starting number from the cash disbursements report or something similar?

Megan C :

That would be correct...

Megan C :

Because credits could include NSF checks, bank fees, etc

Customer:

Thank you. Now about the errors and adjustments in the cash account that are not actually cash receipts nor disbursements, where do I put them on the proof of cash?

Megan C :

You can make a separate column for that

Megan C :

or rows

Customer:

Thank you, XXXXX XXXXX make those corrections and try again. My head is hurting, but I am determined to get this thing straightened out.

Megan C :

LOL I know the feeling.

Customer:

Would it be okay to contact you for follow up

Megan C :

I'm working on a few of my own

Megan C :

:-)

Megan C :

Yes, you can just ask for me again if you need to follow up

Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 14005
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and other Finance Specialists are ready to help you
Expert:  Megan C replied 10 months ago.
Thanks, XXXXX XXXXX your positive rating. Please come back and visit me any time you have a question that needs answered. It was a pleasure working with you today.
Customer: replied 10 months ago.

Megan, I have adjusted my initial worksheet to reflect "Book" receipts compiled from the cash summary report (A/R module) and any JE's. The "Book" disbursements comes from the check register and JE's (mainly payroll ACH). From plugging in these updated numbers, it appears that for the month of January, at least, cash receipts and cash disbursements were properly recorded. I do have some small adjustments to make of erroneous entries to cash. The difference between bank and book corrected balance remains the same. What should I do with this difference? I was thinking about making a journal entry to debit cash $51,505.21 and credit misc expense to the Jan. time period, but that would make any old reports between then and now meaningless. I am attaching a new worksheet.

Attachment: 2013-10-25_200957_proof_of_cash_working.xls

Expert:  Megan C replied 10 months ago.
Thanks,

All looks great! Thanks for sharing. You're going to have to make the adjustment. The easiest thing to do is just write it off to MISC expense. I know it makes old reports useless, but it is what it is...you have to clean it up.

Please let me know if you need anything else.

Thanks

Megan
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 14005
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and other Finance Specialists are ready to help you
Customer: replied 10 months ago.

Thank you for your help. I very much appreciate your expertise and having someone to go to when I am stumped. Smile

Expert:  Megan C replied 10 months ago.
I'm glad I could be of assistance. Just let me know if you need anything additional

Thanks!

Megan

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    2073
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
< Last | Next >
  • http://ww2.justanswer.com/uploads/RA/rakhi.v/2012-7-3_14374_RakhiVasavadaL.64x64.jpeg Rakhi Vasavada's Avatar

    Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    2073
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    1890
    More than 5000 online tutoring sessions.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    1755
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg JKCPA's Avatar

    JKCPA

    CPA

    Satisfied Customers:

    838
    Bachelors degree and CPA with Accounting experience.
  • http://ww2.justanswer.com/uploads/starside8/2010-2-16_55433_DSCN1175.JPG Eric's Avatar

    Eric

    Financial Manager

    Satisfied Customers:

    558
    Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.
  • http://ww2.justanswer.com/uploads/FA/fastfile/2011-12-15_23139_Klein2011small.64x64.jpg R. Klein, EA's Avatar

    R. Klein, EA

    Accountant

    Satisfied Customers:

    397
    Intuit Ask a Tax Expert. QuickBooks Certified Pro Advisor (all editions)
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    324
    NASD Licensed Rep, 1997-2001, Business Attorney