▶ How do I deal with uncashed cheques at Year End?
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How do I deal with uncashed cheques at Year End?

Handling uncashed cheques at Year End is quite straightforward. It's probable that there will be cheques, either sent out as payments or received as income, that aren't reflected on the bank statement before the 31st March, but they are associated with the previous year.

  1. The accounting is based on when cheques were issued or received, not when they are processed through the bank. Since these transactions have been recorded as payments or receipts in the previous year, they will be accurately reflected in the accounts and included in the values in the Annual Return. You don't need to enter uncashed cheques as adjustments when converting your accounts to an income and expenditure format.

  2. While completing the bank reconciliation, keep in mind that this process only verifies the actual bank accounts. Of course, if cheques haven't appeared on the 31st March bank statement, you can't mark them as cashed in the previous year. However, you can reconcile them in the new financial year when they do appear on the bank statement.

  3. In Scribe, the cheques that have not been reconciled will persistently show on the reconciliation screen when logged into the new financial year. There's no need to re-enter them, and they won't impact the accounts for the new financial year.

  4. Once these cheques are reconciled, they will no longer appear in the current year, but all the details will be retained in the year they were recorded in.

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