
1. Why is my statement balance different from my register balance?
Your statement balance comprises only those transactions that were managed, or cleared, through your bank before the cut-off date printed on the statement. Your register balance should include all transactions, whether or not they have been processed through your bank. This is why the two documents requireto be reconciled, or balanced.
2. What is reconciliation?
Reconciliation is a procedure performed upon completion of a permitted construction project to define whether there was an overpayment or underpayment of Construction Use Tax.
3. Why reconcile?
Since the use tax prepaid at the beginning of a project is an approximation, reconciliation is required to regulate if the pre-payment was perfect. Additionally, since many projects have change orders, reconciliation is necessary to report tax on the additional purchases related to these changes.