Bank Reconciliation Statement

The Bank Reconciliation Statement proves that your bank ledger and the bank's own statement tell the same story. The book balance of the bank account on the chosen date is adjusted for items the bank has not yet processed: cheques you issued that have not been presented and deposits you entered that the bank has not yet credited. The result is the balance the bank statement should show; any leftover difference is an error, an unbooked bank charge or an unrecorded deposit. BRAccount reads Payment Entries and Journal Entries on the bank account and treats any row without a Clearance Date as uncleared. Nepali auditors ask for this statement for every bank account at year end.

Expected bank statement balance = Book balance + Cheques issued but not yet cleared - Deposits entered but not yet credited by the bank

1. 01First set clearance dates: go to Banking > Bank Clearance, pick the account, enter each cleared row's date and update.
2. 02Go to Financial Reports > Bank Reconciliation Statement.
3. 03Set Company, the bank Account and the Report Date matching your bank statement date.
4. 04Read Balance as per Bank Account ledger, then the uncleared payments and deposits listed below it.
5. 05Compare Calculated Bank Statement Balance with the closing balance printed on the bank statement.
6. 06Book any difference such as bank charges or interest with a Journal Entry, then rerun the report.
7. 07Export with Menu > Export and file it with the bank statement for the auditor.

Open after entering clearance dates to confirm your books agree with the bank statement.

Bank book balance plus a cheque issued but not yet cleared equals the balance the bank statement should show.