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Bank Reconciliation Template

Simple Alliance, Kenya Limited


Records Scrutiny

Monthly bank reconciliation is the process by which you examine two important business records, namely:

  • The balance appearing on your bank statement
  • The corresponding figures in your business’ accounting records

Comparison 

After reviewing your banking and own records, you determine whether the two balances tally of if there are discrepancies.  

Major Causes of Discrepancy

Differences may arise from a number of factors, namely:

  • If you or your bank make some calculation or entry errors
  • Your failure to record certain banking transactions, for instance, bank charges or credit entries
  • If you wrote a check which has yet to be presented to your bank  

 A Demanding Accounting Task  

Within a one-month period, you are likely to make much credit and debit transactions.  Your accounting books will this bear many entries. Your bank is supposed to record these transactions in your bank statement. Things may not however flow as smoothly as is expected. Your banking records may omit some entries, postponing them to subsequent accounting periods. This problem, among many others, means that your bank statement balance will not tally with the balance in your accounting books.  Such a discrepancy necessitates bank reconciliation on a monthly basis.   

A Handy Aid           

So as to help you conduct your bank reconciliation with some ease, we have developed a reconciliation template for your use.  The bank reconciliation form is contained in the attached MS Excel file.

Using the Bank Reconciliation Template

Before downloading the reconciliation form, you need to install MS Excel software of version 4.0 and above.  After downloading the template file, copy it onto your Excel or Start directory.  On the availed spaces in the form, key in the relevant accounting figures such as:

  • The account balance appearing on your bank statement
  • Your owing checks
  • Your deposits in transit
  • Your accounting books’ balance 

Reconciling Your Balances

In case your bank statement balance does to agree with your accounting books’ balance, get busy trying to locate the source of the discrepancy.  After locating the error, correct it.  

Advantages of the Reconciliation Form

The template will make your reconciliation task much easier. It offers you a number of benefits including:  

  • Making your bank reconciliation task less complex
  • It enables you to conduct a more accurate reconciliation exercise
  • It conducts some clerical work on your behalf

Unique Features

The provided bank reconciliation form offers you several special features. Key ones include:

  • A single download requirement after which you use the template over and over
  • Already prepared balance categories whereby you just key in the balance figures 
  •  

 Attachments

 

Monthly Bank Reconciliation Template

 

 

Occasionally, the entries in your business’ financial books may fail to tally with your corresponding bank statement figures. The differentials could emanate from omission or commission errors either on the part of your bank or on your part. To avert cash related problems that could arise from such disparities; you need to carry out a bank reconciliation exercise at the end of each trading period.  This could be on a monthly or quarterly basis. This exercise helps you to check the bank statement entries against the entries appearing on your accounting books. A comparison of your books against your bank statement entries will help you to spot and rectify anomalies. Rather than bother creating the bank reconciliation statement from scratch, you can download a ready-to-use bank reconciliation form. After entering details like on-transit deposits, book account balances, and unsettled checks, the customised form computes all figures and determines whether or not your book balance tallies with your bank statement balance. In case the balances don’t agree, you identify and correct any irregularities.

Copyright (C) 2016, Simple Alliance Kenya Limited

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