Bank reconciliations

4 stages of the bank reconciliation

Tick the bank statement items which appear in the cash book – circle the ones that don’t.

Update cash book with circled items from the bank statement

Balance off cash bookProduce bank reconciliation statement using

updated cash book balance and items unticked in cash book (i.e. they are in the cashbook but not the on the bank statement)

What if the opening balances do not match?

Opening balance reconciliation identifying what entries are causing the difference

Remember to tick these entries off as they should not be included in your bank reconciliation statement