Easy Method of Preparing a Bank Reconciliation Statement
Reconciliation is needed even to check how much money is there is in your checking account. It is suggested to reconcile your checking account monthly and the best period to reconcile is soon after you receive your bank statement. Irrespective of the type of statement i.e. a paper bank statement or a paperless one which is online, the process of bank account reconciliation remains the same. Reconciling the bank reconciliation process for a few times makes the process quite easy to understand.
- Maintain all your ATM withdrawals or deposits, including the bank charges rightly entered in you checkbook register. After entering all of the activities you need to add all the deposits and deduct the checks which will be withdrawn with an ending balance.
- Then compare the check register with your bank reconciliation statement and in your checkbook check off all the checks that have cleared transactions. If you have missed writing any of the transactions in your checkbook, note down at the end and deduct the amount from your ending balance.
- On a separate piece of paper list the check number and the amount of the checks that you show outstanding. Sum these and note down the total. Also list any deposits that you show in your account which are not reflected in your bank reconciliation statement.
- At the top of the piece of paper write down the ending balance which the bank shows on your bank account reconciliation statement. If you mention deposits in your account that are not on the bank reconciliation statement, add them to the balance from the previous sentence. Note down the amount. Deduct the amount listed earlier. This amount is the adjusted amount and the total in your checking account needs to match the amount on the bank reconciliation statement.
- Reconcile your bank account reconciliation statement if the sums do not match by rechecking addition as well as subtraction. Make sure that the balance was carried forward correctly from first page to second in your check register, verifying the deposits and comparing the check amounts from your checkbook register and the bank account reconciliation statement.
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