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Bank reconciliation
- Bank side and book side
- Difference checked
- Worked example included
Opens in Excel, Google Sheets and Apple Numbers.
Free tools · Keeping the books
Free bank reconciliation template, in Excel and PDF.
Excello's free bank reconciliation template compares your bank statement with your books in two columns, adjusts each side for timing differences and missing items, and shows whether the difference is zero.
Use the Excel version to calculate as you type, or print the PDF and fill it in by hand.
Free. No sign-up. A simple, one-page layout.
- Template
- Formats Excel and PDF
- Layout one page
- Difference checked for you
- Price free
Download the bank reconciliation template: Excel or PDF
The files
A worked bank reconciliation example
Both sides agree
The Excel template ships with this illustrative month. Both sides adjust to $48,425, so the difference is zero and the account is reconciled.
| Line | Amount |
|---|---|
| Balance per bank statement | $48,250 |
| Add: Deposit, 30th, customer payment | $3,400 |
| Add: Deposit, 31st, card settlement | $1,150 |
| Less: Payment 1042, rent | ($2,300) |
| Less: Payment 1045, contractor | ($875) |
| Less: Transfer to supplier, 31st | ($1,200) |
| Adjusted bank balance | $48,425 |
| Line | Amount |
|---|---|
| Balance per books | $48,510 |
| Add: Interest earned | $35 |
| Less: Monthly bank fee | ($45) |
| Less: Returned customer payment | ($75) |
| Adjusted book balance | $48,425 |
Illustrative figures. Deposits in transit total $4,550 and outstanding payments total $4,375; interest, the bank fee and the returned payment need entries in the books.
How to do a bank reconciliation in six steps
Step by step
Get the statement and the book balance
Use the same end date for both: the bank statement closing balance and the account balance in your books.
Tick off matching items
Match each deposit and payment in your books to a line on the statement.
List deposits in transit
Money recorded in your books that the bank had not yet received on the statement date.
List outstanding payments
Payments recorded in your books that had not cleared the bank by the statement date.
Record what only the bank knows
Interest, bank fees and returned payments usually appear first on the statement. Add them to your books.
Check the difference is zero
When both adjusted balances agree, sign and date the reconciliation and file it with the statement.
The formula, and why the balances differ
The arithmetic
Bank side
Statement balance + deposits in transit − outstanding payments ± bank errors = adjusted bank balance
Book side
Book balance + credits not yet recorded − charges not yet recorded ± book errors = adjusted book balance
| Difference | Where it goes | What to do |
|---|---|---|
| Deposits in transit | Bank side, added | Clears in the next few days; no entry needed |
| Outstanding payments | Bank side, subtracted | Clears when the payee banks it; no entry needed |
| Bank fees | Book side, subtracted | Record the fee in your books |
| Interest earned | Book side, added | Record the interest in your books |
| Returned customer payments | Book side, subtracted | Reverse the receipt and follow up with the customer |
| Errors and duplicates | Whichever side made the error | Correct the entry at its source |
From a monthly template to daily matching
Where Excello fits
Frequently asked questions
What is a bank reconciliation?
A bank reconciliation is a check that the cash balance in your books agrees with your bank statement for the same date. It lists the timing differences and missing items that explain any gap until both adjusted balances match.
How often should you reconcile a bank account?
At least monthly, as part of the month-end close. Busy accounts benefit from weekly or daily matching, so problems such as duplicate payments or fraud are spotted while they are still easy to fix.
What are deposits in transit?
Deposits in transit are amounts recorded in your books that the bank had not received by the statement date. A payment banked on the last day of the month is a common example, and it clears on the next statement.
What are outstanding checks or payments?
Outstanding payments are checks or transfers recorded in your books that had not cleared the bank by the statement date. They reduce the statement balance on the reconciliation until they clear.
What if my bank reconciliation does not balance?
Look for amounts entered twice, transposed digits, payments recorded in the wrong month and statement items missing from your books. Halve the difference and look for an entry of that size posted on the wrong side.
Is this bank reconciliation template free?
Yes. The Excel and PDF versions are free to download and use, with no sign-up needed. The Excel file calculates both adjusted balances and the difference, and the PDF prints as a one-page form.