Overview

Pride of Our Footscray operates a dual-bank arrangement: Westpac as the primary transactional bank, and Commonwealth Bank (CBA) for physical cash deposits. This creates a complex reconciliation requirement where cash deposited at CBA must be tracked and matched against Westpac primary account balances.

Key Facts

  • Primary Bank: Westpac (transactional account, supplier payments, payroll)
  • Secondary Bank: Commonwealth Bank (cash deposits only; better physical cash handling facilities)
  • Challenge: No documented workflow for tracking CBA deposits and ensuring timely flow to Westpac
  • Current State: Cash deposits are manually tracked; reconciliation gaps occur when deposits are deposited at CBA but not yet transferred to Westpac
  • Visibility Risk: Daily reconciliation cannot be completed until CBA–Westpac transfer clears

Process Gap

The ideal dual-bank workflow should be:

  1. Cash collected and bagged daily
  2. Deposit made at CBA physical location
  3. CBA deposit recorded in accounting system with timestamp
  4. CBA–Westpac transfer initiated (daily or twice-weekly)
  5. Transfer cleared to Westpac
  6. Westpac receipt matched to CBA deposit
  7. Both banks reconciled to GL cash account

Currently, steps 3–6 lack clear ownership and documented timelines, creating:

  • Timing Issues: Deposits held at CBA for 1–3 days before Westpac transfer
  • Reconciliation Delays: GL cash account cannot be finalised until both banks are clear
  • Audit Risk: Cash-in-transit position not clearly documented

Relationship to Bank Reconciliation

The existing bank reconciliation process is already challenged (1,200+ unreconciled items as of November 2025). Dual-bank complexity adds another layer:

  • Adds a second ledger to match (CBA deposit receipts)
  • Requires tracking of inter-bank transfers
  • Delays final cash position visibility