Free Bank Reconciliation Template (Excel)

Free Bank Reconciliation Template (Excel)

15 December, 2022

6.1k Downloads
  • Bank reconciliation template helps you automate matching records in your bank statement with your cash book. This saves analysts time and improves the speed of related processes such as month-end close.
  • Excel-based bank reconciliation template is free and easy to use. While they help automate the bank reconciliation process to a large extent, they have limitations around collaboration and the speed and accuracy of processing.

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CONTENT
What is bank reconciliation?
What is a bank reconciliation template?
Benefits of Bank Reconciliation Excel Template
Challenges with Bank Reconciliation Excel Template
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What is bank reconciliation?

Bank reconciliation is the process of matching data from cash books with the corresponding data on bank statements. It provides transparency into cash flow and accounts for all incoming and outgoing transactions on the bank statement.

What is a bank reconciliation template?

A bank reconciliation template is a summary of business and banking activity that helps reconcile the bank account of a company with its financial records. It lists all bank account transactions for a given time frame, including deposits, withdrawals, bank fees, and other activities. It is considered an effective internal financial control tool for preventing fraud.

Get our free Microsoft Excel bank reconciliation template and help your analysts save time and effort.

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Benefits of Bank Reconciliation Excel Template

Bank reconciliation using Excel is not fully automatic, but many companies continue to rely on Excel-based bank reconciliation templates since they are often free and easy to use. Although Excel-based bank reconciliation templates sound prehistoric, they have several benefits over manual reconciliation.

  • Using Excel instead of a manual worksheet greatly simplifies reconciling. 
  • An Excel sheet can be used to import data from your accounting system or bank statement, and formulas can then be used to compare the data and spot errors.
  • If there is a cash balance mismatch, erroneous transactions must be checked by hand.

Our free, customizable bank reconciliation Excel template helps you match financial data on your bank statement and cash book and identify mismatches and erroneous entries.

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Challenges with Bank Reconciliation Excel Template

While most people are familiar with spreadsheets and Excel, they are not the best tools for bank reconciliation. Bank reconciliation Excel templates have limitations in speed, the number of transactions that can be processed, real-time data matching, and scalability. 

  • Less efficient

Bank reconciliation templates help you identify record mismatches, but AI-based bank reconciliation software can go one step ahead and even match records where only partial data is available. This makes software solutions more efficient than Excel templates for bank reconciliation.

  • Limitations in processing capability

Bank reconciliation Excel templates tend to hang as the number of records increases. They also have limitations on the number of transactions they can process at a time and on archiving and storing the reconciliation records.

  • Doesn’t support reporting and auditing

Bank reconciliation templates in Excel don’t have features to support financial reporting and auditing. This makes sharing the reconciliation results and collaborating on the template for further actions and decision-making a challenge.

 

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