Not yet registered? Create a OverBlog!

Create my blog

A template for bank reconciliation

A bank reconciliation statement helps to reconcile the balance as per the company’s accounting records with the balance as per the bank’s statement as on a particular date. Differences may exist between these two balances because of many reasons. Bank reconciliation is performed by the accounts department of all companies. This article is a bank reconciliation template which can help.

Creating a bank reconciliation template

Balance as per bank statement as on (particular date): Add: Checks received but not deposited (referred to as outstanding lodgements) These are accounted for by the company in their books but have yet to be deposited in the bank account. So, naturally, the bank statement will not reflect these entries. Therefore, they have to be added to the balance as per bank statement. Add: Recurring payments debited by the bank These payments may not have been accounted by the company on a particular date, so they must be added back to the bank balance. These include bank charges and interest charged by the bank. Less: Checks issued but not presented (referred to as unrepresented checks) A company may issue checks to vendors or others. The company will account for these in their books. However, if these checks are not deposited by the parties, then naturally they will not be lodged in the bank for payment. Therefore, they will not reflect in the bank statement. These have to be deducted from the balance per bank statement. Less: Direct credits made in the bank account When direct payments are made to a company’s bank account (example: dividend, interest), the bank statement will show them as credits and add them to the balance. However, the company’s account departments may not have noted these. So, to reconcile the balances, these direct credits must be deducted from the balance as per bank statement. Or, if the balance as per the company’s book is taken as the starting point for reconciliation, then these entries must be added. = Balance as per company's accounts as on (particular date):

Final word

The bank reconciliation statement template must be created by someone who knows how to work with spreadsheet programs (like MS Excel). Additionally, advanced spreadsheet program users can even pull in data from accounting software. A frequent bank reconciliation process can help the organisation stay up-to-speed with its actual bank balance.

Same category articles Banking

How to find genuine online jobs at home

How to find genuine online jobs at home

There are now many people look for work from home jobs which are genuine. The problem is that there are thousands of potential opportunities which are scams. It makes it important to be able to tell the difference between the legitimate and fake online business opportunities.
How to make the best out of payday loans

How to make the best out of payday loans

Payday cash advances are not cheap APR loans. However, they are available to customers who have been declined for credit elsewhere. You can use the money for any purpose, and you do not have to pass a credit check to get approval. You just have to meet a very basic list of eligibility criteria and you will receive payment under 24 hours.
A guide to getting credit acceptance

A guide to getting credit acceptance

Are you looking to get credit? Are your funds running low and do you need a quick loan to help you pay the bills. This article will detail the information on how to get credit acceptance.
All about: Credit

All about: Credit

Credit can be a powerful tool in the financial world. However, not many people know about credit and the different types of credit that you can obtain from your local bank or building society. Read this article to know about credit.