Bank Reconciliation Calculator
Reconcile your cash book balance with your bank statement balance
Bank Reconciliation
Adjustments to Cash Book
Balance shown in your company's cash book
Automatic debits not recorded in cash book
Bank fees and service charges
Non-sufficient funds (bounced) cheques
Interest credited by bank
Collections received directly by bank
Adjustments to Bank Statement
Balance shown on bank statement
Deposits made but not yet on statement
Outstanding cheques not yet cashed
Bank Reconciliation Results
Calculation Details
Cash Book Adjustments:
Starting Balance: $0
+ Interest Earned: $0
+ Receivables: $0
- Automatic Payments: $0
- Bank Charges: $0
- NSF Cheques: $0
Bank Statement Adjustments:
Starting Balance: $0
+ Deposits in Transit: $0
- Unpresented Cheques: $0
Example Bank Reconciliation
Company Somo - January 2023
Cash Book Balance: $10,321
Bank Statement Balance: $10,505
Deposits in Transit: $450 + $435 = $885
Outstanding Cheques: $100 + $876 + $100 = $1,076
Bank Charges: $7 withdrawal fee
Reconciliation Process
1. Adjusted Bank Balance: $10,505 + $885 - $1,076 = $10,314
2. Adjusted Cash Book: $10,321 - $7 = $10,314
3. Unreconciled Difference: $10,314 - $10,314 = $0
Result: Successfully Reconciled!
Reconciliation Steps
Compare Records
Match items in cash book and bank statement
Adjust Bank Balance
Add deposits in transit, subtract outstanding cheques
Adjust Cash Book
Account for bank charges, interest, NSF cheques
Verify Balance
Ensure adjusted balances match
Reconciliation Tips
Perform reconciliation monthly
Keep detailed records of all transactions
Check for mathematical errors first
Investigate discrepancies promptly
Document all adjustments made
Understanding Bank Reconciliation
What is Bank Reconciliation?
Bank reconciliation is the process of matching and adjusting the balance in your company's cash book with the balance shown on your bank statement. This ensures accuracy and identifies any discrepancies between your records and the bank's records.
Why is it Important?
- •Detect fraudulent transactions early
- •Know your actual available balance
- •Identify errors and omissions
- •Track outstanding transactions
Common Reconciling Items
Cash Book Adjustments:
- Bank Charges: Service fees, overdraft fees
- NSF Cheques: Bounced cheques from customers
- Interest Earned: Bank interest credited
- Automatic Payments: Direct debits, loan payments
- Receivables: Collections by bank
Bank Statement Adjustments:
- Deposits in Transit: Deposits made but not yet recorded
- Outstanding Cheques: Cheques issued but not yet cashed
- Bank Errors: Mistakes made by the bank