For matching the statistics and right for the purpose of internal corrections, bank reconciliation statement is the appropriate most way which helps both bank and account holders using Microsoft excel template to compare and matches the accounting data and finding any errors which may incur big financial rupture.
At the end of the financial year, bank propagates the financial information to all its clients and account holders for the annual financial activities and using this record, businesses and personal accounts can be rectify easily.
What Is A Bank Reconciliation Statement:
Reconciliation is one easy was to draft the entire transaction data and providing statistics on instant basis to monitor if there is any difference of record keeping and account holding at both ends. Bank reconciliation helps by the entire financial year, there are many activities which create the statistical different at both ends and keeping these confusions, many mismanaged activities occur.
In order to avoid this confusion and inter party relationship of client services, bank does this favor to all its clients and customers by providing the details of transactions and their justified reasons so that business and personal accounts can be matched and any possible error can be retained with its explanation so that no financial loss occur at any side
Format of Bank Statement:
As seen from the name in above format of reconciliation, reconciles these errors by finding their possible existence in the record keeping and rectifies the figures to match the end balance at both ends. For this very reason, every bank issues a statement letter confiding to the existing mismatch proposals and justifies their reasons. Below here are some of the factors which lead banks towards generating a detailed and elaborated statement for consolidating their clients with mental peace;
- Late deposit slip of checks in accounts, which business already credits from its accounts and bank holds the exclusive figure in record
- Rejection of checks due to non-sufficient funds, which business takes off from payables but the actual amount still lies
- Deductions of banking policies and less information communication regarding these service charges may cause record difference
- Outstanding checks which are issued from businesses but yet not been presented at banks
- Apart from all these obvious reasons, record keeping at business ends may not be as precise as that of banks, therefore the issue might be initiated from personal account handling which later have to be explained by banks
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