Reconcile Bank Account
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I am trying to reconcile our bank account for the first time and it just happens to be a sweep account. The activity in the bank account is for other companies as well and sweeps in and out thus creating a zero net effect.I am specifically looking for what amounts should I put into the reconciliation since ours are Zero as a beginning and ending balance. I don't believe I need to include the amounts swept to our corp. office since there is not an effect in our general ledger.Thank you for your time!!
Answer
I worked with a sweep account for 3 years in a manufacturing company in California. My experience with it shows that there are 2 sides to the sweep account: Investment and Credit.
The deposits and withdrawls (debits and credits) to the main account then sweep automatically accross these 2 sides, which ever the balance indicates. For instance, when a check run is made, the checks will record on the bank statement with the amounts either drawing from existing investment, or recording as addition credit used.
The sweep account usually has a client relationship manager assigned to it by the bank and will also charge monthly for his services (whether he does anything or not...). This client manager can explain to you what the current activity is and when it was made to the account.
This is REAL basic. I hope it helps. If you have any questions, please contact me.
