Bank reconciliation template in Excel
Agree the bank statement to the cash book at each month end, list every item that explains the difference and see at a glance what still needs clearing. This bank reconciliation template is one Excel workbook with a reconciliation sheet, an items list of 200 rows and a sign-off that checks the reviewer is a different person.
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What the workbook looks like
When you need it
A bank reconciliation proves that the bank account in your ledger agrees with the bank statement, and explains every difference between them. Companies must keep accounting records that show money received and spent day by day, and the bank reconciliation is how a finance team shows those records are right. Use this one when:
- You close the books each month and want the bank done on the first working day
- Old cheques and lodgements are carried forward month after month without anyone chasing them
- Your auditor asks for reconciliations with evidence of review
- One person prepares and checks the reconciliation, with no second pair of eyes
How to use the bank reconciliation template
- Fill in the Reconciliation sheet. Enter the company, the bank account, the month end date and the closing balances from the bank statement and the cash book. Overdrawn balances are negative.
- List each reconciling item. On the Items sheet, choose the type and enter the amount as a positive number. A bank error is + if the bank under-credited you and - if it over-credited you.
- Post what is missing from the cash book. Bank charges, interest and direct debits go into the ledger. Enter the date posted and the flag clears.
- Get the difference to nil. The Check cell tells you what is left to do. Chase or reverse anything older than your limit.
- Sign it off and save a copy. The preparer and a different reviewer sign. Next month, copy across only the items that have not cleared.
Questions
What is a bank reconciliation?
A comparison of the bank balance in your accounting records with the balance on the bank statement at the same date. It lists the items that explain the difference, such as payments not yet presented and money banked but not yet on the statement, until nothing is left unexplained.
How do you do a bank reconciliation?
Start with the statement balance, add outstanding lodgements and take off unpresented payments. Then start with the cash book balance and add or take off items the bank has processed but you have not recorded, such as bank charges. The two adjusted balances should agree.
What is the difference between unpresented payments and outstanding lodgements?
Unpresented payments are payments in your cash book that have not yet gone through the bank, such as cheques not yet cashed. Outstanding lodgements are receipts in your cash book that the bank has not yet credited.
How often should you reconcile your bank account?
At least every month end, as part of the month-end close. Busy accounts with many transactions are often reconciled weekly or daily.
How long should you keep bank statements and reconciliations?
HMRC says a limited company must keep its records, including bank statements, for six years from the end of the last financial year they relate to, and longer in some cases, such as when a tax return was filed late.
Also in the reconciliations pack
Who it's for
Finance teams, bookkeepers and practices that reconcile bank accounts as part of the month-end close.
Last checked
Checked against the Companies Act 2006 accounting records rules and HMRC record keeping guidance in November 2026.
