Free Bank Reconciliation Templates
When you dealing with different transactions with your bank, then it would be so helpful for you to find out the different process of the bank. Let’s take an example, bank reconciliation. So, do you know what it used for and what should be included? Before you just jump for bank reconciliation examples, then let’s find out the definition first. In the bookkeeping, then this form is one process which provides an explanation in any discrepancy in the specific date between the bank balance in the bank statement which given by your bank.
So, it’s pretty easy to solve the discrepancies by only seeing the latest transaction which been found in the bank statement or accounting records then checking if that combination matches with that discrepancy which needs more explanations. If that discrepancy cannot be explained by using this way, then you have to check all transactions in bank or company’s records, then you have to match them from the latest reconciliation that you have done.
The purpose of bank reconciliation template
As you can see that it is very important for you to check the bank reconciliation regularly so that you will know where your money is and where they will go at the end of each month. Of you always updating your cash flow, then you can manage your business better. You should know that bank reconciliation has so many purposes as mentioned below:
To be updated your balance
In order to can decide your actual balance, then you should reconcile your bank account with all of your deposit records, checks, and withdrawal. Your statement might not show you with the payments which you have made before and it’s not yet been subtracted into the posted balance. In order to avoid any excessive drawing from your account and ensure that you have enough money to cover all withdrawals that you need to make your payment.
You can find the issues that you may not aware
When you regularly doing bank reconciliation, then you are able to review your bank statements against the personal record of the company. This issue might be caused by automation or human errors as well. this issue can be in the form of the inaccurate withdrawal or deposit amounts that can affect your total checking amount as well. You can use bank reconciliation excel.