A money trail begins with recorded transactions and obligations—not a flow diagram. The ledger should be able to reproduce every arrow in any later visualization.
Log the transaction as shown
Capture date, payor, payee, account or fund, amount, transaction type, source ID, and exact page or row. Use a separate note for interpretation.
Reconcile before alleging a discrepancy
- Check opening and closing balances.
- Compare bank activity with the general ledger or treasurer report.
- Identify timing differences, duplicates, reversals, and transfers.
- Preserve the arithmetic used to reach a total.
Distinguish assets from obligations
A bank balance and an amount held for someone else may appear together but represent different accounting roles. Preserve the source account labels and seek qualified accounting review when classification matters.