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Accounting For Bank Charges - Accrual

Siva Raman's Profile

Accounting For Bank ChargesPlease let me know whether we need to accrue for Bank charges at the year end. Thanks Siva

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

You should be able to ascertain what the charges are by the 1st of the next month by looking at your bank statement.

So the answer is no to accrue, just book them.

Sara Voight
Title: Controller
Company: Critical Signal Technologies, Inc
(Controller, Critical Signal Technologies, Inc) |

Wayne - my bank is tremendously slow in issuing its analysis statements on a monthly basis and there are enough special transactions with their own rates that I just can't guess. While I can tell you how many deposits there have been and how many checks have cleared, I don't keep track of all the routing numbers to associate the appropriate per check fee into my total. I end up accruing the actual charges from the last month so I have something reasonable on the books.

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

Then you answered your own question - accrue a good faith estimate.

I have another - why are you with that particular bank?

Sara Voight
Title: Controller
Company: Critical Signal Technologies, Inc
(Controller, Critical Signal Technologies, Inc) |

Debt Covenants, Investors, and specific industry drive the requirement to deal with these folks.

Topic Expert
Christie Jahn
Title: CFO
Company: Prime Investments & Development
(CFO, Prime Investments & Development) |

You definitely want to accrue it then as Wayne mentions. I have found your bank should be able to work for you and assist with your needs. If they are unwilling then change banks. They'll all take your money, but they all won't build a lasting relationship.

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

I still have to deal with (or hear of) a bank that books charges for the month....next month. If you have ONLINE access and if the bank processes their month/year ends at 12:01am, I see no reason NOT to have your balance and details by 12:10am beginning of the month/year. As I read from your reply, it seems that you KNOW the charges, but you just can't itemize it or identify it on a per check basis? If I understand it right, why the need to accrue?

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