Guide

Bank reconciliation statement — format and template

The bank reconciliation statement (BRS) reconciles your ledger's bank balance with the bank statement balance. Standard format, common reconciling items, and a downloadable Excel template.

A Bank Reconciliation Statement (BRS) is prepared periodically (usually monthly) to identify differences between the bank balance in the accounting ledger (cash book) and the balance shown on the bank statement. Every reconciling item — outstanding cheque, deposit in transit, bank charge, interest credit, error — has a home on the BRS.

Step-by-step

Step 1
Start with the bank statement balance

As at the period-end date.

Step 2
Add deposits in transit and unrecorded credits

Deposits recorded in your books but not yet on the statement; interest credits the bank has posted but your books haven't.

Step 3
Subtract outstanding cheques and bank charges

Cheques issued but not yet cashed; bank fees the bank has debited but your books haven't.

Step 4
Adjust for errors on either side

Bank errors stay on the BRS until the bank fixes them; ledger errors get a journal entry now.

Step 5
Result equals the reconciled ledger balance

If both sides tie, the reconciliation is complete.

FAQs

How often should I prepare a BRS?

Monthly is standard. Weekly for high-volume accounts.

What's the difference between bank reconciliation and account reconciliation?

Bank reconciliation is a specific type of account reconciliation, matching the ledger to the bank statement. Account reconciliation is the broader control (intercompany, GST, credit card, etc.).

Is the BRS filed anywhere?

Not statutorily, but auditors and lenders often ask for it during due diligence.

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