Bank Reconciliation Statement

Businesses maintain cash book to record both the cash as well as bank transactions. A Cashbook has a cash column which shows cash available with the business and a bank column which shows cash at bank. Bank also keeps an account for every customer in their books. All the deposits are recorded on credit side of customer’s account and withdrawals are on the debit side of their account. An account statement is sent regularly to the customers by the bank

Sometimes the bank balances as per cash book and bank statement doesn’t match. In case balance available in the passbook doesn’t match the bank column of the cash book, the business should identify the reasons for the same. It is important to reconcile the differences.

For reconciling the balances as shown in the Cash Book and passbook a reconciliation statement is prepared known as Bank Reconciliation Statement or BRS. In other words, BRS is a statement which is prepared for reconciling the difference between balances as per cash book’s bank column and passbook on a given date.

Bank statement reconciliation services offered at

Here is a list of the credit and bank reconciliation services that we offer:

Reconciliation of your bank statements with your internal financial records Reconciliation of any credit card statements sent out to customers with your internal records Reconciliation of your General Ledger with vendor and buyer invoices Credit control services that help you monitor your customers’ accounts for any late payments – facilitates follow-up activities to recover overdue payments and improves your cash flow Inter Company reconciliations Year End Reconciliations

In this way, whether you are only looking for bank reconciliations services or also want to outsource credit control services, Efillings can develop a customized solution that fits your exact needs.

Benefits of preparing a BRS

Accounting errors could lead to circumstances which are more than just embarrassing when the cheques bounce or companies start getting annoying calls from creditors or suppliers for payments which are already released. Bank reconciliations assist you in spotting fraud and reducing the risk of transactions which could cause penalties and late fees. BRS offers several advantages to a business which includes:

Detecting errors: A bank reconciliation helps you in spotting accounting errors which are common to every business. These mistakes include errors such as addition and subtraction, missed payments and double payments.

Tracking Interest and Fee: Banks might add interest payments, fees or penalties on your account. Monthly bank reconciliation allows you to add or subtract such amounts in your books.

Detecting Fraud: You may not be able to prevent employees from stealing your money once, however, you could prevent it in future. Bank reconciliations statement helps you in detecting and spotting fraudulent transactions. It is advisable to employ an independent person to perform the reconciliations for preventing the accounting employee from falsifying your books and reconciliations.

Tracking Receivables: BRS allows you to confirm all your receipts, assisting you to avoid awkward situations and also identifying entries for receipts which you didn’t deposit.