Analysis and correction of differences between the closing balance shown on a bank statement, and the sum shown in the bank account owner’s reports is referred to as bank reconciliation. This harmonizing involves making allowance for bank check delivered but not yet presented, and for checks deposited but not yet cleared or endorsed. And, if inconsistencies persist, discovering the reason and matching the records into concurrence.
It is a form that allows persons to put side by side their individual bank account data and the bank’s records of their account balance to expose any likely disagreement
There is a differentiation of timing amid when information is entered in the banks records and when the same information is entered in the persons’ information system; there is usually a typical inconsistency between both of these account balances. The objective of bank reconciliation is to find out if the incongruity is because of any mistake or fault rather than mere timing problem.
If you are wasting lots of time each month reconciling your bank statement and still unable to receive a reconciled bank statement and company account, our specifically designed monthly bank reconciliation template enclosed in the attached file may be your next choice. It can help make the reconciliation procedure far less complicated and much more precise, and will even do some of the bookkeeping work for you. You just have to fill in the entire data in the respected columns. The reconciliation template will calculate all the values, and straight away tell you if your records agree with your bank balance. If they are not a match, you can get back to the work of finding your fault.
Each segment in the template serves a precise function. Therefore, before a reconciliation statement can be arranged, cash balance in the general ledger of the company and the cash balance on the bank statement need to be attuned to make sure both reveal all related business dealings. Then, the adjusted balances are put side by side to conclude if there are still any dissimilarity and if there arise any, such differences are thoroughly scrutinized and corrected.
This particular template is prepared by using MS Excel 2007 and you can easily use and edit it if you have installed same or latest version of MS Excel in your computer. Below is the preview of this template.