What is a bank deposit analysis?

Answer

With bank deposits one of the things that the auditor would do is they would look at the deposits in your bank account, both from credit card and cash sources, and make certain adjustments to the deposits, such as if you collect sales tax reimbursement, they would need to back that out. For example, you’re in the industry where you get non-taxable gratuities they would have to back that out to determine what your net taxable sales would be based on the bank deposits. They could then compare that to what you reported and note any differences or ask you to explain any significant differences.

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