SHORT ANSWER · PROOF OF CASH
How do you do a proof of cash?
To do a proof of cash, put the bank’s beginning balance, receipts, disbursements and ending balance on one row, then add each reconciling item until every column totals to the books. In Matter 25-117, March per bank reads 14,902.35, 8,120.00, 4,781.80 and 18,240.55, and the books end at 18,428.15.
STEP BY STEP
What are the steps, start to finish?
Five steps, shown on checking ••4417 for March 2025 in Matter 25-117, a fictional matter. Choosing a tool? See the best proof of cash software.
- 1
Set up four amount columns
Beginning balance, Receipts, Disbursements and Ending balance, with a row for the bank on top and a total row for the books at the bottom. The layout is on is there a free proof of cash template?
- 2
Prove the bank row
14,902.35 + 8,120.00 − 4,781.80 = 18,240.55, the closing balance the bank printed. ZeraBooks does this check for you and marks a statement that fails as Needs a look.
- 3
Add the deposit in transit
A 500.00 deposit was in the books on March 31 but hit the bank in April. It goes in Receipts and in Ending balance.
- 4
Add the outstanding check
Check 3290 for 312.40 was written in March and hadn’t cleared. It goes in Disbursements and comes off Ending balance as −312.40.
- 5
Tie every column to the books
Receipts reach 8,620.00 and disbursements 5,094.20. The ending balance is 18,428.15, which is 18,240.55 + 500.00 − 312.40.
ZeraBooks builds the workflow around your matters and your template for free. No development charge, whether it’s a forensic department or one person.
WHEN IT DOESN’T TIE
What does it mean when a column won’t tie?
It means money moved through the bank that the books don’t show, or the books show money the bank never saw. A difference left in Receipts or Disbursements after every timing item is listed is the finding, and it is the part a single-balance check can’t give you. The difference between a proof of cash and a bank reconciliation comes down to exactly this.
Do I need last month’s reconciliation first?
Yes, for the beginning column. Items still open at the start of the month, such as a deposit in transit from the prior month, sit in the beginning balance and come back out of receipts or disbursements.
Can I do a proof of cash for a whole year?
Yes. Build it month by month so a difference points to the month it happened in.
Where do receipts and disbursements per bank come from?
From the statement’s money in and money out. ZeraBooks gives them as Money In and Money Out columns, already proven to the printed balances.
FREE CUSTOM BUILD
Prove the bank row.
Then add the items.
Send one past matter and see every statement proven before it goes into your proof of cash.