Bank Reconciliation Statement (BRS)
The bank balance shown in your cash book rarely equals the balance in the bank's statement on the same date. A Bank Reconciliation Statement explains the difference by listing the items recorded in one book but not yet in the other. Preparing it monthly catches bank charges you forgot to record, cheques that never cleared and, occasionally, bank errors or fraud.
Typical reconciling items
- Cheques issued but not yet presented — reduced in cash book, not yet in bank statement.
- Cheques deposited but not yet credited — added in cash book, still in clearing.
- Direct credits (customer NEFT, interest) in the bank statement not yet recorded in cash book.
- Direct debits (bank charges, EMI, SMS fees) in the bank statement not yet recorded.
- Errors in either book.
How this tool works
Enter or import both sets of entries: bank statement rows (credit/debit) and cash book bank-column rows (receipt/payment). Set a date tolerance (default ±5 days). The tool automatically matches entries with the same amount and direction within that window, lists the unmatched items on each side, and builds the BRS starting from the cash book balance: add cheques not presented and unrecorded credits, less cheques not cleared and unrecorded debits, to arrive at the bank statement balance. It also lists the cash book entries you need to pass. Export everything to Excel.
Worked example
Cash book balance ₹1,87,500. Cheque No. 222 for ₹27,500 issued but not presented (add). Cheque of ₹18,000 deposited but not cleared (less). Bank charges ₹590 not recorded (less). Interest ₹1,250 and a direct credit ₹8,000 not recorded (add). Derived bank balance = 1,87,500 + 27,500 − 18,000 − 590 + 1,250 + 8,000 = ₹2,05,660, which equals the bank statement balance — reconciled.
Importing data
Export your bank statement to CSV/Excel with columns Date, Description, Type (Cr/Dr), Amount and use the Import button. Dates in DD-MM-YYYY or YYYY-MM-DD are accepted.
Frequently Asked Questions
How often should I prepare a BRS?
Monthly at minimum; weekly for businesses with many cheque or UPI transactions.
Which items need an entry in my books?
Only items that appear in the bank statement but not in the cash book — bank charges, interest, direct credits/debits. Timing items (cheques in transit) need no entry.
What if the statement still does not reconcile?
Look for amounts entered differently in the two books (transposition), duplicated entries, or a cheque recorded with the wrong amount. Reduce the date tolerance to spot forced matches.
Can I start from the bank statement balance instead?
Yes — simply reverse the signs of the adjustments. This tool follows the common exam and audit format starting from the cash book balance.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.