Bank Reconciliation Automation in Microsoft Excel

Bank reconciliation automation in microsoft excel

Want automated bank reconciliation in Excel? Read on.

With over a decade of experience as an accountant, I’ve honed various techniques to enhance the efficiency of bank reconciliation through Excel automation. Allow me to share my insights.

Forget about investing in additional bank reconciliation software; MS Excel has all the capabilities you need for seamless automation.

Account reconciliation of your bank ledger is much easier after you read this post. I promise after this you’ll improve how you do your reconciliation process.

Streamline the reconciliation process for your bank transactions effortlessly. Begin by mastering essential formulas and then applying that knowledge effectively.

Excel Formulas/Functions

The bank reconciliation formulas/functions we will use in order to do the automation of bank reconciliation in Excel are:

  • SUMIF
  • VLOOKUP
  • COUNTIF

You can compare each transactions from your cash book with all of your bank statement lines or records shown in your bank statement.

For your bank rec, here is how we use these formulas.

We use SUMIF to match deposits. This function involves utilizing batch numbers in our bookkeeping records. Similarly, on the bank statement, we’ll employ these batch numbers to reconcile the entries on both ends.

The VLOOKUP function proves valuable when cross-referencing checks. In this process, we utilize check numbers as the basis for the lookup function. The result derived from this formula serves the purpose of identifying any disparities between the recorded amount in our books and the amount reflected in the bank statement.

The COUNTIF function is handy for figuring out how frequently a transaction appears in both the depositors’ and the banks’ records. For instance, it can help determine if a check is listed multiple times on a bank statement. Moreover, it aids in addressing the query of whether a check has been mistakenly recorded multiple times in the cash book.

Reconciling Cash Deposits with bank statement

Bank Reconciliation includes Reconciling cash deposits with bank statement and it can also have some sort of automation in Excel.

For instance, the SUMIF function in Excel is used to sum values in a range based on a specified condition or criteria. This is handy when reconciling your bank account.

Go here for more information about SUMIF in reconciliation: Steps to Reconcile Deposits in Transit.

SUMIF is the perfect deposit in transit formula.

It allows you to add up the values in a range that meet a particular criterion or satisfy a specific condition.

So, we use batch numbers when we reconcile in Excel.

Next, manually add batch numbers on all credits from a bank statement.

bank statement credits with batch numbers

After using the SUMIF function, the result looks like this:

Column G in Excel Calculates the deposits in transit.

Read Also: BRS format.

Reconciling Check Issuance

In bank reconciliation, reconciling check issuances in Excel uses the VLOOKUP function for automation.

Click here for more info about Bank reconciliation Excel – VLOOKUP.

The VLOOKUP function in Excel is a powerful tool for searching for a value in a table and retrieving information from that table.

The term “VLOOKUP” stands for “Vertical Lookup,” and it is particularly useful for looking up information in a vertical arrangement of data.

If we do not find the value in the bank statement, which is mark as #N/A, it means that it is an outstanding check.

Don’t miss: Bank reconciliation template.

Using the COUNTIF Function

To streamline the bank reconciliation process in Excel, consider leveraging the COUNTIF function.

This function helps identify instances of repeated data, such as journal entries, which may disrupt the balance between your cash book and bank statement.

By addressing these duplicates, you enhance the accuracy and efficiency of your reconciliation efforts, ensuring a more seamless financial record.

Download Links

Click here to download reconciling Deposits.

Click here to download reconciling checks.

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