Bank Reconciliation
Bank says one number, your books say another — list the reconciling items until they agree.
Balances
Add reconciling item
Recorded in your books, not yet showing in the bank
Reconciliation
Adjusted bank
₹0.00
Adjusted book
₹0.00
Reconciled
✓
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What is a bank reconciliation statement (BRS)?
A bank reconciliation statement, or BRS, explains why the bank balance in your cash book differs from the balance on your bank statement on the same date. It lists the items only one side has recorded so far and adjusts for them until both figures agree. When they do, you know every rupee in the account is accounted for in your books, and anything left over points to an error or a missing entry.
In India the BRS is a routine part of bookkeeping and audit work, and auditors commonly ask for one for each bank account as at 31 March, along with the bank statements. For shops and restaurants, many gaps now come less from cheques and more from card and payment-gateway settlements that reach the bank a day or more later, often as one lump sum net of MDR or gateway fees.
This tool uses the adjusted-balance format. Instead of starting from one balance and working towards the other, it corrects both: the bank balance for items the bank has not processed yet, and the book balance for items the bank has processed but you have not recorded. If the two adjusted figures are equal, the account is reconciled. If not, whatever is left is the amount you still have to explain.
What the bank reconciliation tool does
Four item types
Deposits in transit and outstanding cheques adjust the bank balance; bank credits and bank charges not yet in your books adjust the book balance.
A hint for each type
A short hint under the type selector says what belongs there, for example a cheque you issued that the bank has not cleared yet.
Print-ready BRS
Print / PDF lays out the statement with Add and Less sections under each balance, both adjusted balances and the final result, dated today.
CSV export
One file holds both balances, every item with its type, the two adjusted balances and the difference.
Saves as you go
Balances and items are kept in this browser automatically, so you can close the page and finish later on the same device.
Delete with a confirmation
Remove any item after a quick confirmation, and the adjusted balances update straight away.
How to use the free bank reconciliation tool
- 1Enter the bank statement closing balance and your cash book or ledger balance for the same date.
- 2Compare the statement with your cash book line by line and note every entry that appears on only one side.
- 3For each one, choose its type: deposit in transit, outstanding cheque or payment, bank credit not in books, or bank charge not in books. Add a description and amount, then click Add item.
- 4Watch the Adjusted bank, Adjusted book and Difference figures update. The difference card turns green and reads Reconciled when the two match.
- 5Click Print / PDF for a formatted bank reconciliation statement, or Export CSV for a spreadsheet copy.
Which reconciling items need an entry in your books
Deposits in transit and outstanding cheques need no entry in your books: they are timing gaps that usually clear within days, and you carry one forward only if it is still uncleared at the next month-end. Bank-side items are different, because the bank is right and your books are behind. Bank charges, interest credited, NACH or ECS debits, direct UPI receipts and bounced cheques all need to be recorded, for example as a journal entry, before you close the month. Chase any cheque that stays outstanding for weeks: a cheque in India is valid for three months from its date.
Frequently asked questions
Timing and omissions: cheques you issued that haven't cleared, deposits the bank hasn't credited yet, bank charges and interest you haven't recorded. Each is a reconciling item.
Monthly at minimum, when the bank statement arrives. Busy businesses reconcile weekly — the sooner you catch an error or a missing entry, the easier it is to fix.
Check for transposed digits (a difference divisible by 9 is a classic sign), duplicated entries, or a transaction recorded on the wrong side. The tool shows the residual difference live as you add items.
A deposit in transit is money you have recorded as banked but the bank has not credited yet, such as a cheque deposited on the last day of the month. It is added to the bank balance. An outstanding cheque is one you have issued and recorded, but the payee has not presented or the bank has not cleared. It is subtracted from the bank balance.
Either works. Textbook formats usually start from one balance and adjust towards the other. This tool adjusts both: the bank balance for deposits in transit and outstanding cheques, and the book balance for bank credits and charges you have not recorded yet. The test is the same either way: the two adjusted balances must be equal.
No. This tool does not import statement files. You type in the two closing balances and each reconciling item yourself, which is quick for a typical small-business month with a handful of differences. For a busy account, match the statement against your books in a spreadsheet first, then enter only the unmatched items here.
The tool holds one reconciliation at a time. Before you start the next month, click Print / PDF or Export CSV to keep a copy of the current one. Then enter the new closing balances, delete the items that have since cleared, and leave in place any cheque still outstanding or deposit still in transit.