• Version 1.0

• Prepared by: @Lorraine Sebata

• Approved by: @Marcia Wilkinson

• Reviewed date: 2025-07-24

• Next review date: 2026-07-24

1. Purpose

This SOP aims to ensure that customer funds collected in the office are consistently, accurately, and securely handled and deposited into the bank.

2. Scope

This SOP covers the entire process of preparing bank deposits, including the collection, reconciliation, and deposit of funds received from customers. It outlines the responsibilities and procedures for all employees involved in the deposit preparation process, ensuring that the company's financial records are maintained accurately and securely.

3. Related Policies

• Bank Deposits Policy

• Cash Management SOP

4. Roles and Responsibilities

• All Employees: Responsible for collecting, counting, and reconciling customer cash and checks.

• Accountant / Accounting Officer: Responsible for addressing discrepancies, ensuring accurate recording of deposits, and monthly bank statement reconciliation.

• General Manager / CEO: Responsible for receiving and overseeing the transfer of deposit bags.

5. Procedure: Bank Deposit Processing

5.1 Prepare Bank Deposit

• 5.1.1 Collect cash and check deposits for the prior day(s)

• 5.1.2 Use the company stamp, which includes the Company Name and Account Number, to endorse the back of all checks

• 5.1.3 Record checks and cash into the deposit book. The current reconciliation date should also be noted in the deposit book to ensure accurate and up-to-date record-keeping

• 5.1.4 Complete check details on the deposit slip, including customers' names and payment amounts

• 5.1.5 Make copies of all checks being recorded

• 5.1.6 Carefully type or neatly write a comprehensive list of all cash payments received, including the customer names and the corresponding payment amounts. Ensure the list is accurate and complete, then attach it to the deposit slip to facilitate the deposit process

• 5.1.7 Calculate, reconcile, and enter totals onto the deposit slip

• 5.1.8 Wrap cash & checks in the white deposit slip and place them in the deposit bag (can include multiple items)

• 5.1.9 Initial the deposit slip in the 'deposited by' box

• 5.1.10 Attach the bag number slip onto the pink deposit slip

• 5.1.11 Attach copies of personal checks, business checks, and any other financial documents onto the designated blue deposit slip. Carefully write the corresponding deposit bag number onto the slip. Scan the completed deposit slip and all attached documents to the computer system for digital record-keeping and future reference

• 5.1.12 Seal the deposit bag and place the deposit bag number slip onto the pink slip

5.2 Transfer Bank Deposit

• 5.2.1 Immediately transfer the deposit bag with contents to the General Manager or CEO once prepared

5.3 Process Transaction in Accounting Software (Xero)

• 5.3.1 In Xero software, go to the "Undeposited funds" section and select all the checks and cash transactions that were intended to be deposited. Then, mark these transactions as reconciled

• 5.3.2 Once the reconciliation process is completed, the reconciled funds must be promptly transferred from the undeposited account to the designated First Caribbean account

• 5.3.3 Go to "Manage account" and select 'Transfer Money'

• 5.3.4 Select from "Undeposited" to "First Caribbean C/A"

• 5.3.5 Enter the date of the deposit slip

• 5.3.6 Enter the amount of total cash or checks deposited/slipped separately

• 5.3.7 For reference, use the Bag number and CASH EQV/CHECK EQV

• 5.3.8 In the case of multiple deposits/bags, enter the number in brackets. For example: EP1234567 CASH EQV (2)

5.4 Reconciling in Xero Software

• 5.4.1 Go to "Account Transactions" in "Undeposited funds", locate the transfer, and mark it as reconciled for both cash and check deposits

• 5.4.2 Attach the scanned deposit slip and copies of checks to reconciled transactions

• 5.4.3 Once the First Caribbean account is updated, the transaction would show up on the reconciliation screen. Once the transaction has been cleared, the details of the transaction should be attached to the reconciliation entry. This will ensure that a clear record of the transaction is maintained and can be easily referenced in the future if needed

6. Documentation and Forms

• Deposit Book (see transactions in Xero)

• Deposit Slips (White, Pink, Blue)

• Copies of Checks

• List of Cash Payments

• Deposit Bags

• Xero Accounting Software Records

7. Training

All employees involved in the bank deposit process will receive mandatory training on this SOP and related policies annually or upon significant revisions.

8. Review and Revision

This SOP will be reviewed annually by the Operations and Finance Departments to ensure its continued effectiveness, compliance, and alignment with business objectives.