Bank Reconciliation Calculator
What is the bank reconciliation?
A bank reconciliation is when the balance in a business’s bank account is compared to the same amount in its accounting records.
This procedure is performed so that any differences between the two can be identified and corrected.
What is a bank reconciliation calculator?
A bank reconciliation calculator is a tool that can be used to make the process of reconciling your bank account quick and easy.
It compares the information on the bank statement with the information in the company’s accounting records. If there are any differences, they can be fixed.
How does a bank reconciliation calculator work?
Our bank reconciliation calculator works by letting the user put in information from both their bank statements and their accounting records.
The calculator then compares the two and highlights any differences. After that, the user can make any necessary changes to the accounting records to ensure that the bank account balance and the balance in the accounting records match.
Benefits of using our bank reconciliation calculator
Using our bank reconciliation calculator has many benefits, some of which are the following:
- Time-saving:
Our calculator saves you a lot of time and effort by making it easy to compare your bank statement and accounting records.
- Increased accuracy:
By using a calculator, you can reduce the chance of making a mistake, which will make your reconciliation more accurate.
- Improved record-keeping:
Our calculator generates a reconciliation report that you can save for your records. This report acts as an audit trail for compliance and tax purposes.
- Easy to use:
Our calculator is user-friendly and simple to use, so even those with limited accounting knowledge can benefit from it.
- Accessibility:
Our calculator is available online, so you can use it from any location with an internet connection.
- Cost-effective:
Instead of hiring a bookkeeper or accountant to do the reconciliation for you, you can save money by using our calculator.
- Flexibility:
Our calculator can be used to reconcile both personal and business bank accounts.
Our bank reconciliation calculator can help you keep good records, lower the chance of making mistakes, and save time and money. It’s an excellent tool for businesses of all sizes and accounting skill levels.
Bank reconciliation formula
The bank reconciliation formula is:
Ending Balance (per bank statement) = Beginning Balance (per company’s records) + Deposits – Withdrawals + Outstanding Checks + Corrections
Example
Let’s say a company’s records show that the beginning balance of the bank account is $10,000. During the month, the company received $5,000 in deposits, made $3,000 in withdrawals, and wrote $1,000 in checks that have not yet cleared the bank.
The bank statement also shows a $200 fee that the company was not aware of.
To reconcile the account, the company would enter these values into the calculator:
Beginning Balance (per company’s records): $10,000
Deposits: $5,000
Withdrawals: $3,000
Outstanding Checks: $1,000
Corrections: $200
When the user clicks the “Calculate” button, the calculator would perform the following calculation:
Ending Balance (per bank statement) = $10,000 + $5,000 – $3,000 + $1,000 + $200 = $13,200
The calculator would then show the result in the “Ending Balance (per bank statement)” field.
In this case, the company’s records and the bank’s records match, so the company knows that its accounting is correct.
Please keep in mind that this is only an example; actual numbers and calculations may vary depending on the company’s records and bank statements.
Terms used in the bank reconciliation calculator
Here is a short explanation of each of the terms used in the bank reconciliation calculator:
- Beginning Balance (per company’s records):
This is the balance of the company’s bank account as per the company’s own records. It is usually recorded in the general ledger or accounting software of the company.
- Deposits:
This is the amount of money deposited into the company’s bank account. This can include cash, checks, and electronic transfers.
- Withdrawals:
This is the amount of money taken from the company’s bank account. This can include company checks, electronic transfers, and ATM withdrawals.
- Outstanding Checks:
These are checks that the company has written but have not yet been cleared by the bank. They are deducted from the company’s records because they have not yet been deducted from the bank account.
- Corrections:
These are any other changes that need to be made for the company’s records to match up with the bank statement. This can include things like bank errors, returned checks, or fees.
- Ending Balance (per bank statement):
This is the balance of the company’s bank account according to the bank’s records. It is typically found on the monthly bank statement received by the company.
The goal of the bank reconciliation process is to ensure that the company’s records match the bank’s records.
To calculate the Ending Balance (per bank statement), the bank reconciliation calculator employs the following formula: Ending Balance (per bank statement) = Beginning Balance (per company’s records) + Deposits – Withdrawals + Outstanding Checks + Corrections.
How do you use our bank reconciliation calculator?
Using our bank reconciliation calculator is simple and straightforward. Here are the steps to follow:
Step 1: Gather your bank statement information. This includes your ending balance, deposits, withdrawals, outstanding checks, and any other relevant information.
Step 2: Gather your accounting record information. This includes your starting balance, any other deposits or withdrawals, and any other information that is important.
Step 3: Enter the information from your bank statement and accounting records into our calculator.
Step 4: The calculator will then compare the two sets of information and find any differences.
Step 5: Make any changes to your accounting records that you need to make sure the balance in your bank account matches the balance on your accounting records.
Step 6: After making the necessary adjustments, use the calculator to ensure that the bank account balance and the accounting record balance match.
Step 7: Review the reconciliation report and save it for your records if everything is correct.
It’s that easy! Our calculator is user-friendly and simple to use, so even those with limited accounting knowledge can benefit from it.
Also, our calculator can save you a lot of time by automating the process of comparing bank statements and accounting records. This lets you focus on more important tasks.
Lastly, the bank reconciliation process makes sure that the balances in a company’s accounting records and bank accounts are the same.
A bank reconciliation calculator, like the one we use, is a great way to save time and automate the process.
With our calculator, it’s easy to compare your bank statements and accounting records, find differences, and make changes as needed.
Our calculator is easy to understand and use, which makes it a good choice for businesses of all sizes and levels of accounting knowledge.
Also, the bank reconciliation formula is an important way to understand how the process works and what the ending balance, deposits, withdrawals, outstanding checks, and corrections mean on the bank reconciliation calculator.
To use our bank reconciliation calculator, simply enter your bank statement and accounting record information, and the calculator will do the rest.
