PLANNING & PARTICIPATING IN MEETING
§ Business meeting bring people together to communicate or receive information, make decision & solve problems.
§ It can increase interdependence (mutual reliance or dependence on others) of tasks.
§ Without meeting, it would be difficult for employees to keep up to date on company matters, changing business conditions and procedures
§ Well organized meeting whether held face to face or by electronic means is necessary for business to run smoothly.
TYPES OF BUSINESS MEETING
The nature of organization, function of department and the purpose of the meeting will determine whether the meetings is small or informal, formal or multinational in scope.
Informal & Small Group Meetings.
§ Meeting in which office workers are involved
§ will be informal discussions and small group meetings
§ It is set up as committee meetings that address a specific topic or ongoing concerns & issues such as safety and security.
Formal Business Meeting
§ A formal meeting follows a definite order of business, involves a specific audience & requires a high degree of coordination & preparation.
§ Occur at a specific time on a weekly or monthly basis.
§ Some formal business meeting may be planned for longer periods of time.
§ As organizer, scheduler & facilitator (one who assists, make easy) for formal business meeting must ensure that the meeting is planned properly, material are available & follow-up items are noted & carried through.
§ Multinational meeting are likely to be very formal, requiring detail long-range planning & preparation.
§ Participants do not speak the same language or may not be in the same physical location.
§ The knowledge in International & business etiquette, time differences, technology, trouble-shooting and the role of liaison (acting as go - between for two or more groups of people) among all participants in the meeting will be critical.
§ Liaison includes working with hotel personnel, equipment providers & the participants them selves.
PLANNING THE MEETING
Regardless of the size of the meeting, document prepared for meetings required organization & planning. There may include:-
Agenda: A list of the topic to be discussed during the meeting
Minutes: The written, historical record of the official business of a meeting
Follow-up items: Reminders to participate to task to do before the next meeting
Note: workers may have responsibilities before, during and after a formal meeting for preparing the agenda, taking the minutes, writing and distributing the minutes and note the follow-up items from the minutes.
Before The Meeting
a. Establish a meeting Folder
Use this folder to collect items, related to the meeting such as list of attendees, the agenda, notes and copies of material to be distributed.
b. Reserve the meeting room
Rooms may be equipped with overhead projectors etc.
c. Notify the meeting participants.
Notify as soon as possible of the time, place, approximate length & purpose of the meeting. Identify any materials or supporting documents they should brings.
d. Use your reminder systems
e. Key the agenda.
All participants and recording secretary should receive a copy of the agenda prior to the meeting.
f. Organize meeting materials & Handouts
E.g. Notepads, pencil, file folders, badges, parking stickers etc.
g. Prepare the meeting Rooms.
Make sure all facilities are available, the room temperature should be comfortable etc.
During The Meeting
§ The degree to which workers participate during the meeting will depend upon:
i. the purpose of the meeting
iii. pre-planning to be done.
§ The minutes detail the action taken by the group and should not be a verbatim (word for word) transcript of the meeting.
§ The recorder must make note of all pertinent information.
§ The minutes must give a clear, accurate and complete accounting of the happenings of the meeting.
Item appear in Minutes meeting
i. Name of group, company, organization or business holding the meeting
ii. Time, date, place & type of meeting
(eg monthly, weekly)
iii. Name of presiding officer
iv. Members present & absent
v. Reading & approval of the minutes from the previous meeting.
vi. Committee or individual reports.
vii. Unfinished business (action taken)
viii. New business
ix. Time, date & place of next meeting
x. Time of adjournment
xi. Signature of the individual responsible for the minutes.
After The Meeting
§ Need to complete certain follow-up activities
§ Prepare the minutes as soon as possible
§ Use example of previous minute for appropriate format
§ Ask the Chair of Meeting to proofread the typed minutes before they are distributed to be sure there are no omission or errors.
§ Complete any correspondence associate with the meeting, such as thank you letters or resource persons or letter requesting information.
PARTICIPATING IN MEETING
§ Meeting is a permanent part of the business.
§ People or staff in marketing, committee, ad hoc (created temporarily to solve a specific problem) or sales meetings, they are designed to discover problem, exchange information and make decision.
§ As an office worker, you should be prepared to lead, participate in, contribute to, and feel a part of any meeting you attend.
M Leadership skills are important in meeting such as knowing elements of their job, meeting deadlines, improving how the tasks are completed and working with people.
M A good meeting leader is :
i. Aware of his or her styles of leadership and conducts the meeting in a way that makes everyone feel comfortable.
ii. Know the objective of the meeting
iii. Familiar with the background material
iv. Has relevant documents at hand
v. Willing to listen to others' suggestion
vi. Keeps the meeting on topic and moving toward solution or a consensus (common agreement, mutual understanding)
vii. Ensure that all participants are taking part in the discussion and remain open to new & creative approaches.
M Is a group technique used to facilitate and generate ideas that lead to making decision or solving problems.
M The objective is to come up with as many ideas as possible to solve a problem.
Rules during brainstorming
i. All ideas are recorded
ii. Criticism of ideas is not allowed until all ideas have been expressed
iii. Explanation and combinations of ideas are encouraged
To encourage brainstorming, a meeting leader must be willing to give time to the process and encourage everyone to participate.
M Its refer to the interactions, communications exchange, and relationship among the members of a group.
M It can play an important part in reaching group consensus & decision.
Components of Group dynamic:
M It depends on the purpose of the meeting.
M Communication will be enhanced when group members can see one another, face to face & all participants can see the leader
M The purpose of the meeting should determine the seating arrangement.
ý The round table or circle may be used when the leader is seeking a true cooperative form of decision making. This format also reduces the appearance of status difference between the participants.
ý The U-shaped arrangements accommodate larger meetings (10 - 12 persons). All participants can see each other & side conversation are less likely.
ý The center table layout, with the leader at one end of the table, allows the leader to control the discussion & communications of the meeting. All communication tends to flow toward the head of the table.
b. Exchange of Information
M It can be enhance by the seating arrangement and the willingness of the leader to encourage & facilitate communication
M Pre-meeting planning by the leader can set up to open exchange of information among group member by:
v Providing in advance materials that will be discussed.
v Arranging the room & seating to meet the needs of the meeting
v Preparing visual aids that guide the discussion
v Using the appropriate leadership style.
M Relationship among the group's members will play a critical role in the quality of the decisions made.
M A good leader listens, asks questions, accepts criticism, keeps the meeting on topic, negotiate and resolve conflicts.
M Conflicts arise when participants have strong opinions or hidden agendas (their own private objective)
Guidelines to create an atmosphere of mutual trust & cooperation in meeting.
i. Use neutral language in the discussion
ii. Avoid placing blame
iii. Ask open-ended question
iv. Use terms that all participants understand
v. Allow all participants to speak completely with no disruptions
vi. Maintain a pleasant facial expression
vii. Pay particular attention to the physical arrangements
This is the method to encourage group participants and allow each person to express his or her opinion.
E.g. What do you think about ……………..?
What approach can we use to solve this problem?
Ali, we haven't heard your ideas about …………….
DEVELOPING THE ACTION PLAN
The written plan of action can replace the traditional minutes of a meeting, because it focuses on the actions to be taken after the meeting rather than simply recording the proceedings.
Basic information about the meeting is included in the action plan.
i. Subject, date, name of chair and recorder
ii. Specific action to be taken & the person (s) responsible
iii. The deadlines for the actions & completion dates
iv. Key issue discussed & the participants
v. The meeting length.
To avoid at a plan of action, the meeting leader should ensure that:
i. All meeting participants understand the plan
ii. All meeting participants have input into the final outcome.
iii. All meeting participants have definite assignment to put the plan inaction
iv. The plan of action is implemented & assignment are completed
M Teleconferences are a meeting of people in different location connected by a telecommunications system.
M It can be used to deliver training, exchange information or solve problem & make decision.
Types Of Telecommunication System
a. Audio Conferences
M Involved only audio (sound) exchanges among the participants, as in telephone conference.
M An audio conference room is equipped with microphone-speakers, arranged on table at certain intervals, so that all participants can talk to and hear from other participate.
M Audio graphic conference, using microphone-speakers system, a computer terminal & an electronic tablet, make it possible to hear the other participants and see written information at the same time.
M A speaker at one location can explain material on the speaker system and concurrently (at the same time) written on the electronic tablet.
M The information appears on the computer terminal at the receiving end along with the audio explanation.
M Since the tablet is electronic, with the touch of a button, the information can be printed for all participants.
b. Video Conferences
M The teleconference may be more sophisticated when an interactive video (twos way exchange of sound and video picture) system is used than when audio alone is used.
M Its permits people to meet at two or more locations with visual & audio contact (through television, cameras, microphones, monitors etc.) almost if they were in the same room.
c. Computer Conferences
M People communicate information through computer network, allowing them to have "meeting" by writing messages to each other on their computers.
M It's similar to telephone conference call and another term applied to computer conferences is interactive computer conferencing.
M Teleconference can be expensive, so the meeting time should be used wisely.
Guideline to preparing for a teleconference.
i. Reserve the conference room & necessary equipment
ii. Notify the participants of the date, time, length & purpose of the meeting, include a telephone number, the name of a contact for participants in the event of technical difficulties.
iii. Prepare & distribute any related material
iv. Prepare & distribute to the participants the online agenda well in advance of the teleconference. It is a listing of the events and topics of discussion.
v. Make sure all system are in operating condition and are available for use during the teleconference.
vi. Arrange to have a technician stand by in the event of technical difficulties.
· Reasons for travelling:
§ To supervise company operation
§ To meet the clients
§ To meet company associates
§ To attend meeting & conferences
· Travel arrangement must be made in accordance with company policy.
· The mode of travel depends on the personal preferences.
· You must be able to meet business obligations scheduled away from your office.
· A travel folder (or trip file) helps to organise your trip (collect information about the trip, e.g. notes on reservation, tickets, accommodations, meetings, etc.)
· Info in the folder is useful to prepare itinerary, complete company travel documents, and serve as a reminder system.
When planning the trip, set aside time for:
· Schedule meeting and appointments. (Shortly before the trip, confirm the appointment date, time and meeting place).
· Organise the names, titles, company names, addresses, telephone number or e-mail address of the individual with whom meeting are scheduled.
· Make reservation for transportation & overnight accommodation.
· Prepare itinerary and gather supporting materials.
· To manage a tight schedule is by air travel.
· There are national, regional and commuter airlines.
· Updated airline timetable is useful to determine travel info (flight schedule, services offered & toll-free reservations number.
· Official Airline Guide (OAG) is a source of flight info & schedule.
· Online travel info service – to scan info for various airlines, make selections, have the tickets prepared.
· Flight reservations can be made by calling travel agent or by calling an airline directly.
· Flight itinerary used to create the traveller’s itinerary.
· Invoice is retained to attach to the travel expense report.
· Boarding pass is given to the airline attendance prior to boarding the plane.
· Rental Car
§ For short trips
§ Available at most airport & convenient locations
§ Fees vary in price according to the size, length of time and miles driven
§ Follow established company guidelines
· Train Travel
§ Popular in high population concentrations
§ Stations are located at the centre of the cities
§ Overnight trains have sleeping & dining accommodations on board
· You may specify a particular hotel if familiar with the city or rely on a travel agent or office assistant.
· When making reservations by telephone:
§ Use toll-free telephone numbers
§ Write down the name of the person who make and confirm reservations
§ Make a notes of the rates you’re quoted
§ Record the confirmation number & repeat it
§ The confirmation number should be included on the itinerary
§ A written confirmation from the hotel is helpful
· The OAG’s Business Travel Planner provides information about hotel.
Prepare an itinerary:
· An itinerary is a detailed plan of a trip serves as a guide
· It includes – travel arrangements, appointments, hotel/motel reservations, reminder or special instructions.
· Allow enough travel time between appointments.
· You may need several copies of itinerary.
· It should be in an easy-to-read format that gives the day-by-day schedule for the complete trip.
Gather Supporting Items:
· Before the trip gather all related items:
§ Travel tickets
§ Travel funds
§ Hotel/motel and car rental confirmations
§ Maps of cities or states as appropriate
§ Directions to offices or other meetings locations
§ Speeches, supporting correspondence, reports or files for each appointment/meeting
§ Forms for recording expenses
§ Extra notepaper, pens and business cards
§ Electronic equipments, e.g. calculator, laptop computer, modem, and portable phone.
· If too heavy or bulky, arrange to have them shipped
· Arrange for special packaging for equipment to prevent damage
· Confirm upon arrival and have a backup plan
· Your behaviour your company and your home area.
· Proper dress and travel etiquette will contribute to a successful business trip.
· The dress will contribute to the first impression you make on others.
§ Dress appropriately for the type of meeting or function you’re attending.
§ Dress for travel: less formal. Dress more formal if to conduct business upon arrival.
§ Dress to impress: Proper dress is important when travelling in foreign countries or meeting with persons from a different culture.
§ Be aware of the dress customs.
· The etiquette will vary from country to country.
· Consult a travel agent or someone who has lived or done business there.
· Consider the following customs and protocols:
§ Be on time for appointment.
§ Take an ample supply of business card.
§ Provide a gift that is company-associated, with a company logo.
§ Paying for meals and tipping for clients is generally accepted as the role of the host.
§ Be sure your handshake is firm but not painful.
§ Know the body language and gestures that may be offensive in other culture. Always smile.
§ Know to pronounce the name and how to address the person.
§ Taste any food that is offered by the host.
§ Speak standard English. Avoid slang terms & colloquialisms.
§ An official document granting permission to travel
§ It authenticates a person’s right to protection in foreign countries.
§ Allow enough lead time to obtain a passport for the first time
§ Valid for ten years.
§ Make a photocopy of the identification page so that the passport can be replaced if it is loss.
§ Visa is a permit granted by foreign government for a person to enter its country.
§ Usually appears as a stamped notation in a passport, indicating that the person may enter the country for a certain purpose and for a specific period of time.
§ Be sure the effective dates of a visa.
· Health Document:
§ When travelling to some countries, certain vaccinations & inoculations may be required.
§ Records of these immunizations must be signed by a physician & validated by the local or the state health officer.
§ Other health considerations:
· Medicine for air sickness
· Documentations from a physician verifying special prescription medicines that must be taken
· Permission to carry over-the-counter medicines that might not be available in the country to be visited.
· A work permit: registers the presence of the person as a visitor on specific business.
· Tourist card: authorises a person to travel throughout the country.
Safety suggestions as you travel:
· Do not leave your luggage or other items unintended in hotel lobbies or in waiting areas in airports.
· Keep your passport and travel funds in a safe, secure place.
· Do not agree to carry items in your luggage for another person.
· Use all locking devices on doors or windows in your hotel rooms.
· Do not leave valuables in your car and be sure to lock your vehicle.
· Be observant and look around before entering parking lots late at night. Use the main entrance.
· Protect your credit and calling card numbers at all times.
HANDLING WORK WHILE AWAY FROM THE OFFICE
· Before the traveller leaves for business trip, it is important for the office assistance to understand how to deal with:
§ Routine matters
§ Crisis situations
§ Out-of-the-ordinary occurrences
· The following questions should be considered:
§ Who may handle the crises while you are out? What kinds of crises/emergencies have occurred before?
§ Who will be making routine decision?
§ What kinds of messages/documents should be forwarded to you?
§ How many times will you be in touch with the office?
§ What kinds of documents will be forwarded to the office prior to returning to the office?
· Suggestions to office assistant to keep the office running smoothly:
§ Keep up your regular duties and use your time wisely.
§ Keep an itemised listing of incoming mail.
§ Answer any routine mail that you can.
§ Keep a log of faxes, telephone calls and visitors.
§ Avoid making appointments for the first day the traveller is back in the office.
§ Keep notes of matters you want to discuss with the traveller upon his/her return.
· Telecommunications technology makes it possible to take the office anywhere.
· Having access to telecommunications technology allows the traveller to:
§ Send and receive business data
§ Access messages (voice or e-mail)
§ Transfer travel expense records to an office assistant.
§ Check availability of products for clients.
§ Place orders and receive confirmation of orders.
§ Stay up to date with the policy or procedural changes while out of the office.
§ Participate in audio conferences.
· After the trip, certain follow-up activities should be completed:
§ Determining travel expense reimbursement
§ Generating a variety of reports
§ Writing thank-you letters
· Travel expense reports may include:
§ Hotel/motel accommodations
§ Meals and tips
§ Ground and air transportations
§ Entertainment expenses
§ Other approved business expenses
· If the company funds were advanced, they were accounted for on the travel expense report.
· Receipts may be required.
· Meeting reports include: sales summaries, client visit logs, project progress updates, and others.
· Reports provide written evidence of:
§ Decisions that were made
§ Goals that were set
§ Complaints or suggestions from customers
§ Ideas that needed to be discussed
· All reports are forwarded to the persons who will be affected by the decisions, goals, complaints or ideas.
· May be sent as a result of the business contacts and activities encountered on the trip.
· Depend on the purpose of the travel and business etiquette guidelines.
· Other follow-up letters may provide a written record of agreements made during the visit or items that need to be accomplished.
Individuals and business both need to transfer money to others in settlement of bills and other expenses at some time. Banks and the Post Office mainly provide the services.
1. Functions of banks
Banks have three main functions:
i. The accept deposit from their customers
ii. They transfer money to and from their customers' accounts
iii. They lend money to their customers
2. Opening a Bank Account
Information needs when opening the account:
i. The applicant's full names and address
ii. If the applicant is at work, occupation and employer's name and address is required
iii. A specimen signature (so that the bank can recognize that instructions have been issued by the account holder)
iv. A reference, which may be either the employer or somebody else who has an account at that branch
v. Some money (but a few Ringgit will do)
TYPES OF ACCOUNTS
1. Current Account (cheque account)
Ä This type of account is used by individuals and businesses for safekeeping of funds needed for day-to-day expenses.
Ä A chequebook is issued with a current account.
Ä Interest is not usually paid on this type of account.
Ä Bank charges may be incurred on a current account but many banks offer free banking for current account customers provided that the account stays in credit and is not overdrawn.
2. Deposit Account (saving account)
Ä A bank deposit account is useful for individuals and businesses with funds not required for immediate use.
Ä No chequebook is issued with this account and withdrawals from a deposit account are normally in the form of cash.
Ä Depositors are paid interest on money left in the account.
3. Budget Account
Ä Its helps even out the payment of annual household expenses
Ä On payment of a regular fixed amount, the bank allows the account holders to draw cheques, standing orders or direct debits to meet these bills up to an agreed limit.
Ä Whilst the account is in credit, it earns interest, but interest is charged when the account is overdrawn.
TYPES OF PAYMENTS
a. The parties of a cheques
A cheque is a written instruction to the bank to pay money to the account holder or to another person.
A cheque always has three parties:
i. The Drawer
This is the person signing the cheque and form whose account funds are to be withdrawn.
ii. The Drawee
This is the bank which has the account of the drawer
iii. The Payee
This is the person to whom payment is being made. The payee and the drawer will be the same person when the account holder is withdrawing cashes.
Most cheques are order cheques, which means they must be signed (endorsed) on the reverse by the named payee if they wish to pass it on to someone else.
There are five entries written on a cheque by the payee.
1. The date on which the cheque is written
2. The name of the payee
3. The amount to be paid, in words
4. The amount to be paid, in figures
5. The signature of the drawer.
Ä The written entries must be made in such a way that they cannot easily be altered (cannot used pencil or a pen whose characters can be rubbed out)
Ä Avoid leaving spaces where someone could write in something extra.
Ä If a mistake is made when writing the cheque, the error should be neatly crossed through, and the correct entry written in a signed by the drawer to show that it is their alteration and not a forgery.
b. Printed Entries on A Cheque
Ä At the bottom of the cheque, a row of printed numbers can be seen. These are printed in magnetic ink and can be recognized or read by the banks computer sorting equipment (know as reader or sorters). The system is called MICR (Magnetic Ink Character Recognition) and the characters are often referred to as the MICR line.
The printed numbers are:
* The serial number of the cheque
* The bank sorting code number - this enables the computer sorting equipment to direct cheques to the drawee bank; each branch has its own sorting code number.
* The customer's account number.
The fourth entry - the amount of the cheque - is added along this line as the cheque passed through the clearing system.
c. Cheque Crossing
A cheque with two parallel lines drawn vertically across it is known as a crossed cheque.
Ä This type of cheque must be paid into a bank account and cannot be exchanged for cash.
Ä A cheque which does not have two parallel lines drawn across it is an open cheque (not a safe as a crossed cheque because an open cheque will be paid to whomever presents it at the bank.)
d. Special Types Of Crossing On A Cheque
To make the cheque safer, a 'special' crossing should be used giving more specific instructions on how the cheque may be used.
Three most frequently used 'special' cheque crossing is:
i. ii. iii.
i. This crossing ensures that the cheque can only be paid into the account of the payee, although he/she can pay it into his/her account through any branch he/she wishes.
ii. This means the same as the above crossing except that the cheque can only be paid in at the branch stated in the crossing
iii. When written as a cheque crossing this warns anyone other than the payee accepting the cheque that they do so with some degree of risk. The risk they face is that if the cheque has been stolen or fraudulently used, then the person accepting it is liable to refund the rightful owner with the amount shown on the cheque.
e. The Cheque Clearing System
Ä When a payee deposits a cheque into his/her bank account it does not mean that a transfer of funds has taken place.
Ä The payee's bank has to 'collect' the funds from the drawee bank and this is done by sending the cheque through the clearing system.
(See the life cycle of a cheque)
f. Dishonored Cheques
Ä Cheques, which are not passed for payment by the drawer's bank, are said to have been dishonored or "bounced".
Ä The drawee bank will write "refer to Drawer' or R/D on the cheque and send it to the collecting bank to return to its customer (the payee).
Ä It is payee's responsibilities to find out why the cheque has not been honored.
Reasons a cheque might 'bounce'
i. Cheque contains an error or is unsigned
ii. Cheques is 'stale' (more than six months old)
iii. Signature differs from specimen held at bank
iv. Drawer does not have sufficient funds in account
v. Cheque has been altered
vi. Cheque is post-dated (dated for some time in the future)
vii. Cheque has been 'stopped' by the drawer (drawer has instructed bank not to make payment).
'Stopping' a cheque
The drawer may wish to stop a cheque if, for example, a letter containing a cheque was lost in the post. To stop the cheque, the bank will need to know:
i. The cheque number.
ii. The amount of the cheque
iii. The date of the cheque
iv. And the name of the payee
This information may be given by telephone in the first instance, but written confirmation will also be required.
2. Bank Statement of Account
Ä The bank statement of account is issued to the account holder periodically or on request.
Ä Its included the statement of
§ Sums all the transactions which have taken place since the last statement was issued
§ Current balance held in the account.
§ Amount which reduce the balance in the account (e.g. cheques issued) are shown in the payment column.
§ As each payment or receipt is recorded a new balance figure is shown in a third column.
(See example of bank statement of account)
3. Credit Cards
Ð Credit cards enable someone to buy goods or services up to a credit limit set by the credit card company without having to make immediate payment.
Ð The cardholder must be over 18 to have use of a credit card.
Ð At monthly intervals, the credit card company will send the cardholder a statement listing all their credit card transactions in the precious month.
Ð The re are given a further period (about three weeks) to settle the amount owing.
Ð A minimum amount must be paid as indicated on the statement.
Ð Interest is charge on any balance owing.
4. Automatic Payments / Electronic Funds Transfer
Ä Banks now have services that allow everybody to use personal computer terminal or the telephone to pay bills.
Ä Its requires less time and effort on your part and automates the payment process.
Ä Customers of savings and investment funds routinely use telephone transfer to switch their investments from one fund to another.
Ä Certain bills can also be paid in this was as well.
5. Computer Transfer
Ä If you use a computer terminal and modem to bank electronically, you can keyboard instruction for a computer transfer of fund from the company account to pay bill.
Ä Point-of-sale transfer means that customers use bank identification cards called debit cards instead of credit cards or checks to pay for goods and services.
Ä The store clerk inserts the card into the store's register, which is a terminal for the centralized system, and links up with the bank's computer, which immediately transfer the amount of the sale from the customer's account to the store's account.
Ä Point-of-sale transfer are listed on the monthly bank statements of both the customer and the store
6. Reconciling and Account Balance
Ä Each month banks send their customers statements of all activities involving their accounts, including deposits, withdrawals, checks that have cleared, interest paid to the accounts and fees charged against them.
Ä With this statements and the carbons copy, individual can check immediately and can reconciling the balance, which involves comparing the balance reported on the bank statement with the balance recorded.
The procedure for reconciling the balance, manually or electronically, is as follows:
a. Arrange the canceled checks according to the check numbers
b. Compare the amounts of the checks with the amounts listed for them on the bank statement
c. Compare the checks with checkbook stubs, and place a check mark on the stubs to indicate that the checks have cleared. On the reconciliation form, list the number and the amount of any checks still outstanding, and add their amounts.
d. Compare the deposit amount show on the check stubs or in the check register with those listed on the statement. List any deposits not reported on the statement, and add the amounts.
e. Add the total of unlisted deposits to the balance shown on the bank statement, and subtract the total of outstanding checks. The resulting figure is called the adjusted bank balance.
f. Examine the statement for service charge or interest payments. Subtract the service charge form the balance recorded in your checkbook, and add the interest payments.
g. The resulting figure should equal the adjusted bank balance. If it does, record the service charge and interest payment amounts in the checkbook, and write in the new balance.
If your new checkbook balance and the adjusted bank balance do not agree, you need to determine the reason for the difference.
a. look for mistakes in the calculations on the reconciliation form or mistakes in your data entry
b. If the calculation is correct, go through the check stubs to verify that each check is listed either among the cleared checks (on the bank's statements) or among the outstanding checks (on your reconciliation form)
c. Then check the bank's list and that the amounts agree.
d. Make sure each deposit recorded in your checkbook should be listed either on the bank statement or on your reconciliation form.
e. Look at your checkbook to be sure that the balance you brought forward to each page is correct.
f. If find a check stub with an error on it, circle the error and write on the stub "True Figure is RM.…". Correction is on stub #."
g. Make the appropriate adjustment on the stub.
h. When you have reconciled the balance, write on the last stub covered by the bank statement "Agrees with bank statement" and the date of the statement.
i. File the bank statement, reconciliation sheet and canceled checks in chronological order.
TYPES OF BANKING SERVICES
1. Bank Giro (credit transfer)
Ä Instead of giving a cheque to the payee it is possible to transfer the funds by bank giro directly to someone else's bank account (also refereed to as credit transfer)
Ä The person making the payment does not have to have a bank account since a bank giro transfer can be made with cash or cheque.
Ä In some circumstances banks may charge a fee for this service.
a. Single Transfer Bank Giro
A bank giro form similar to the following is filled in to make a single payment directly to a stated bank account. E.g. Telephone bills, Electric bills etc.
b. Multiple Transfer Bank Giro
Ä Using this method the payee only writes out a single cheque to pay several bills or a number of different people.
Ä A list or schedule is passed to the bank showing details of a number of different accounts to be credited by direct transfer
Ä This system can be used to pay the bill of several traders, but is particularly useful in paying the wages of many employees.
2. Standing Orders
Ä This is an instruction to the bank to pay a fixed amount to a named individual or firm at a fixed date each month until the end of a fixed period of time or until further notice.
Ä The bank will automatically transfer the funds from the account each month saving the account holder the inconvenience of having to remember to make the payment.
Ä The bank has to be given fresh instruction if the account holder wishes to change the amount of the payment.
3. Direct Debts
Ä This is similar to standing orders except that in this case the payee obtains permission to withdraw regular amounts from a drawer's account at fixed dates.
Ä This amount may be varied by the payee and notified to the account holder at a later time. It also suitable where the payment amounts is likely to vary.
Note: This standing order and direct debt have dual roles in respect of business applications. They not only make it easy for the business to make regular payments, but they also enable businesses to receive regular payment from their customers.
4. Borrowing form a Bank
Banks use the money that has been deposited with them to make loans to other customers. The interest rate charged is the 'price' for borrowing the money and interest is an important source of earning for banks.
5. Night Depositories
Ä If your company must deposit large amounts of currency after business hours, use a night depository.
Ä This is a slot on the outside wall of a bank through which customers can drop their deposits after banking hours.
Ä Businesses that collect money after banking hours often use night depositories as a safety precaution (they do not have to keep money on the premises overnight)
Ä Bank provides deposit bags with locks for customers who frequently use night depositories.
Ä Bags containing deposits are dropped through the night depository slot and opened the next day.