Importance of Creating Bank Reconciliation Statement

Importance of analyzing business bank reconciliation statements can be observed through statements creating here. Bank reconciliation definition and example is also discussed here for the users who are completely unaware of the term.

Download bank reconciliation statement format excel here. Outlining errors is the initial step of investigating the source and therefore correcting the mistake. If you are looking for sample templates to help you identify difference in the balance in the company account and in the company records you can download one of the template from this page.

Auditing process is practiced in the companies and firms after the year end and the auditors are there to provide evidence that the financial statements of the business are well prepared and including the transactions which are actually occurred in the business therefore balance in both company account and documents must be matched with each other.

Format of Creating Bank Reconciliation Statement

These checklist is just reminds you prepare this statement in professional format, do not forgot to insert header and footer section of company brand.

  • Observe balance in the bank and the documents.
  • Outline the difference between both.
  • To highlight the cause you are required to color the transactions showed up in one of these.
  • Now highlight the amount causing the difference.
  • Make a document showing the causes and the amount different in both the documents.

Small difference amount monthly can sum up becoming the major amount causing a big difference in both the statements. Auditors can identify the changes showing company financial documents inaccurate.

If you are able to observe the root cause you can make reconciliation on time. Fees deducted by banks annually are another cause of the balance difference.

BRS Example Template

If you are dealing with clients carrying out sales and buying on credit terms you are required to keep a record of the amounts received from specific customer to prevent bounced checks therefore this statement are inserted for the companies’ accountants.

There are many system in bank for checking transaction keep clean without any error for any time Hassel and problems; this system is very popular in every bank GOVT to Private. Form may differ due to difference of banking rules and regulation but general description are alike that.

Cas Dave

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