A bank reconciliation template is a document that helps match the cash balance on a company’s balance sheet to the corresponding amount on its bank statement.
It summarizes banking activity, allowing individuals and companies to compare their own records with the bank’s records.
The template typically includes spaces to enter the account balance shown on the bank statement, deposits in transit, outstanding checks, and the account balance according to the company’s books.
Using a standardized template ensures accuracy and eliminates errors, making the reconciliation process less time-consuming and more accurate.
It is a valuable internal tool that can help detect errors, omissions, and fraud in a financial
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Free Excel Template
A bank reconciliation template in Excel is a tool that helps to match the cash balance on a company’s balance sheet with the corresponding amount on its bank statement.
It is used to identify and rectify any discrepancies between the two records.
The template typically includes fields for entering the bank statement balance, the company’s accounting record balance, and any adjustments for outstanding checks, deposits in transit, and bank charges.
What’s inside the template?
Inside this bank reconciliation template for accounting is a statement format that aims to calculate the adjusted balance.
The Excel file below consists of a reconciliation formula.
The adjusted balance of the book must equal the adjusted balance of the bank in order for the bank reconciliation to be complete.
In order for both balances to equal, the reconciliation starts with the monthly bank balance, which is usually taken from ending balance of the bank statement (referred to as the unadjusted bank balance).
Deposits in transit increase the adjusted bank balance, while outstanding checks decrease it.
Rarely, there are also bank errors that could increase or decrease the adjusted bank balance.
Continuing on, the unadjusted book balance is taken from the cash book, which is part of the General Ledger.
The balance is the ending balance of the period being reconciled.
The BRS format shows all unreconciled items in the book. Examples are the book errors and unrecorded transactions.
Book errors are recording errors that were committed when the transactions are recorded.
On the other hand, unrecorded transactions are transactions found in the bank’s records, which are non-existent in the books.
Examples of unrecorded transactions are interest income, bank charges, unrecorded check issuances and unrecorded fund transfers.
A yearly bank reconciliation template is a document that matches the cash balance on a company’s balance sheet to the corresponding amount on its bank statement for a full year.
It helps determine if accounting changes are needed and ensures that the company’s cash records are correct.
Bank reconciliations are completed at regular intervals to detect fraud and any cash manipulations.
A bank reconciliation statement summarizes banking activity, allowing individuals and companies to compare their own records with the bank’s records.
Here is the free download of bank reconciliation template for accounting: