How to Use the Bank Reconciliation Template
This template is intuitive, means that, it has self-explanatory features; a pop up instruction is shown up when clicking on cells you want to fill, and has build-in formulas on it.
This is a simple (but useful) template that surely helps you in the process of reconciling cash.
Here are two goals the template aims to achieve:
1. Introducing you with a clear and effective bank reconciliation worksheet.
2. With its simple structure, it helps you to speed up the process of reconciling your cash.
However, keep in mind that it can’t change an inaccurate cash ledger into more accurate one. You’re the one who should do the job. This is why a simple build-in control cell (called “Difference“) is included at the bottom of the template;
- If the control cell shows zero (0), means your reconciliation is correct, as well as your book
- If the control cell shows other than zero (either minus or plus value), means your reconciliation has not been correct yet, and you would need to figure out reasons for the difference.
Here are steps you can take to address the difference (on the latter case):
Step-1. Make sure, the following items have been included on your book:
– Interest you earn from the bank
– Tax on interest expense
– Transfer charges
– Check book charges
– Other bank charges
– Other auto-debited expenses
Make journal entry for any items that has not included yet.
Step-2. Re-run reconciliation process – Once the step-1 has been completed, your cash balance is changed accordingly, you then are able to re-run the reconciliation process. Though you don’t need to re-type the ‘Deposit-in-Transit‘ and ‘Outstanding Check‘, again. Instead, just key in the new cash balance onto the ‘Per Your Book‘ field, and see if the ‘Difference‘ cell is now showing zero (0). I hope so. Otherwise, go on next step…
Step-3. Perform cash ledger review – Arriving on this step clearly says that, you’re facing a serious problem, thus a more efforts are required. If this is the case, you would need to perform an in-depth cash ledger review, find out cash transactions that either has not been keyed yet, keyed twice or wrongly keyed (wrong amount or wrong account). A good way to perform the task is by comparing the cash ledger with the check stabs, cash receipt, and supporting documents.
Tracing error transactions can be tedious, but you don’t have other choices. A better approach to prevent such issue is by performing regular ledger review on daily (or at least a weekly) basis. By doing so, you can catch erroneous right when they are occurring and fix them faster, not a month later when everybody have forgetten what those transactions were exactly about.
Here is a screenshot of the template shows the pop-up instruction:
Download Bank Reconciliation Template
Now, you can download the bank reconciliation template which I store at a public sharing site called Zippyshare. Happy downloading:
~Updated: Sept 08′ 2012
Note: Since this is a free storage service, you may see a lot of ads in there, when accessing the site, but there is no pop-up ads as far as I observe it. The download button is right by right-side of the file name (BankReconciliationTemplate) shown up on the page.