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You receive accounts by email every Tuesday and Thursday, containing statements of cash flows, and other information for the week. The statements begin with additional information on the previous week, and then move into the present week. No charges can be made with the mail. Receipt of each statement will be confirmed, and details of each transaction will be shown in a window on the "Statement Overview" page.

Keep the bank book in a safe place, as problems can occur if the book is not available on the day you are reconciling, or it is lost. Take care to separate the journal from the cashbook, as a transaction in the cashbook should ordinarily be reconciled with a transaction in the journal, and vice versa.

An exception to this rule is when there is an intermediate stage such as shops or rent. In these cases you have to treat the receipts and payments as a single entry. In our example, the rent would be paid first, but then you have to pay the bank manager. You treat it as a new transaction, so you create a new journal entry at the end of the month.

On the final balance sheet, you prepare a profit and loss account for each asset class. The profit and loss account is prepared by adding up the net profits for the period and adjusting for any losses. We will look at both the familiar concept of profit and loss, and how to prepare a profit and loss account for a family business.

Your organisation may need a range of record-keeping periods. For example, you may need to record a position in stock every quarter or every half-year. You might also want to set up an account of "Revenues from Customers" every year. d2c66b5586

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