A BRS or bank reconciliation statement is prepared by a company to compare their bank account balance with the accounting records. It helps identify discrepancies between the two data, such as unrecorded transactions, errors, or fraud.
A bank reconciliation statement is an important financial document that helps in tax and financial reporting. It includes details such as deposits, withdrawals and any other transactional activities related to the bank account for a specific period.
Check details on what is bank reconciliation statement, BRS format and the method to prepare a BRS on this page.
A Bank Reconciliation Statement helps identify and explain the differences between the bank's records and the company's records, ensuring accurate financial reporting. It generally consists of the following components:
One can refer to the image below to get a proper understanding of the bank reconciliation statement format.
Image source: Geeksforgeeks
To do the bank reconciliation, one should have their bank statements and accounting records, including chequebooks, receipts, and any deposit slips. Here are the detailed steps to prepare a bank reconciliation statement:
A Bank Reconciliation Statement (BRS) offers several benefits. Some of the major importance of a BRS are mentioned below: