FREE 11+ Account Reconciliation Samples & Templates in PDF | MS Word

Businesses and companies operate best when their finance management is handled effectively and in order. Without ensuring the effective and efficient management of business finances, executives will not be able to determine whether they are earning profit or not. They will also not be able to determine which suppliers have already been paid and how much they have received. For this reason, it is important for businesses to conduct account reconciliation which is a process that confirms that accounts in their general ledger are accurate, complete, and consistent.

FREE 11+ Account Reconciliation Samples & Templates in PDF | MS Word

1. Sample Account Reconciliation Template

2. Bank Account Reconciliation Template

3. Account Reconciliation Services Template

4. Basic Account Reconciliation Template

5. Trust Account Reconciliation Template

6. Account Reconciliation Training Template

7. Account Reconciliation Form Template

8. Trust Account Reconciliation Report

 9. Client Account Reconciliation Statement Template

10. Standard Account Reconciliation Template

11. Student Account Reconciliation Template

 12. Sample Set Reconciliation Account Template

What is an Account Reconciliation?

Account reconciliation is an accounting process performed at the end of an accounting period to ensure that the account balances in the business general ledger are completed and accurate. This process involves a comparison between the account balance of the general ledger to supporting documentation such as independent systems and third-party data to validate the balance indicated in the ledger. Account reconciliation is essential for ensuring the accuracy and completeness of business financial statements as well as reconciling all of its balance sheet accounts.

How to Perform Account Reconciliation

Accountants perform account reconciliation procedures to explain the dissimilarities between financial reports or records like bank statements and cash books. Any detected differences without proper and sound explanations between two records can be a sign of financial misappropriation or theft. This process is an important procedure for liability, asset, and equity accounts since the balances are carried forward each year. By performing account reconciliation, business owners can ensure that their financial movements and account statements are properly documented and transacted.

Step 1: Compare Cash Book Statements Against Bank Statements

Check all transactions documented in the company cash book against the same transactions that were recorded in the bank statement. Create a list of all transactions in your bank statement that are not supported by evidence like a payment receipt.

Step 2: Review Transactions Recorded on Both Statements

Make sure that all transactions that appear in the bank statement but missing in the cash book must be determined and noted. You also have to determine deposits and account credits that are recorded in the cash book but not in your bank statement and add them to your bank statement balance.

Step 3: Review the Bank Statement for Possible Errors

Bank errors are considered rare but in case it happens, the company must contact their bank as soon as possible to report these errors. Corrections will be observed in the future bank statement, however, there will be adjustments to the current period’s bank reconciliation to confirm the discrepancy.

Step 4: Ensure that Both Balances are Equal

Once you’ve found all evidence for differences between the cash book and bank statement, make sure that the balance for both documents is accurate and equal. Prepare a bank reconciliation statement to explain the discrepancies.

FAQs

Account reconciliation is an accounting process utilized by businesses to determine discrepancies, mistakes, or fraud in their accounting books that can greatly affect the financial health and status of their company. This process commonly involves a comparison of the business’s internal accounts to its external accounts which includes reviewing their payments and deposits, checking bank statements for all of their cash outflows and inflows, determining charges that have no receipts, and making sure that debit and credit balances are equal.