It is the third of the month. The management company wants the previous month accounts by the fifth. The bank statement shows a balance that does not match your ledger by EUR 3,185.25, the chef has three receipts in a wet pocket, and the yacht is moving. The close is not an accounting ritual; it is the moment your numbers become the truth everybody else works from.
What reconciliation proves
Reconciliation proves that two independent records of the same money agree: your ledger and the bank statement, your ledger and the card statement, your ledger and the physical cash. Differences are not errors by definition — they are usually timing — but every difference must be named.
A worked bank reconciliation
| Line | EUR |
|---|---|
| Cash book balance per yacht ledger | 51,190.40 |
| Less bank charges not yet posted to the ledger | (85.00) |
| Adjusted cash book balance | 51,105.40 |
| Bank statement closing balance | 54,290.65 |
| Less payments issued but not yet cleared | (3,580.25) |
| Add deposit in transit | 395.00 |
| Adjusted bank balance | 51,105.40 |
Both sides now agree at EUR 51,105.40. The two adjustments on the bank side are timing; the bank charge on the ledger side is a genuine missing entry that must be posted.
The monthly close sequence
- Cut off. Fix the date. Nothing after it goes in this month.
- Collect. Chase every outstanding receipt and invoice from every department. Publish the deadline in advance.
- Code. Post everything to account and department. Nothing sits in a suspense account without a note explaining why.
- Reconcile. Bank, each card, each cash float, and the APA if a charter is running.
- Accrue. Known costs not yet invoiced (a yard bill, a berthing fee) are flagged so the month is not artificially clean.
- Review. Read the numbers as a manager, not a clerk. Does anything look wrong?
- Report. Send the pack: profit and loss against budget, cash position, variance commentary, reconciliations, and the supporting documents.
- Archive. Lock the period, file the evidence, back it up.
Variances need a sentence, not a shrug
A number on its own creates work for the person reading it. Interior overspend 14,500 driven by replacement of glassware and linen ahead of the charter season, approved by the captain on 14 May closes the question before it is asked.
Onboard Notes
- Never force a reconciliation by posting a plug figure to make it balance. An unexplained difference is a finding; a hidden one is misconduct.
- Build the close into the yacht rhythm. Weekly mini-reconciliations mean month end takes hours, not days.
- If you cannot close on time because of a genuine obstacle, tell the office before the deadline, not after it.