A bank reconciliation compares the bank balance in your books with the balance on the bank statement for the same date, and lists what explains the gap. It is the simplest check that the books are complete.
Why the two rarely agree
- Cheques issued but not yet presented
- in your books, not yet in the bank.
- Deposits not yet credited
- cheques deposited late in the day.
- Bank charges and interest
- in the bank, not yet in your books.
- UPI and NEFT receipts not recorded
- money received but not entered against a customer.
- Errors
- wrong amount, wrong party, or a duplicate entry.
A simple statement
| Amount | |
|---|---|
| Balance as per books | ₹4,82,300 |
| Add: cheques issued, not presented | ₹65,000 |
| Less: deposits not yet credited | ₹38,000 |
| Less: bank charges not recorded | ₹1,180 |
| Balance as per bank statement | ₹5,08,120 |
How often
Monthly at the least; weekly for a business with many UPI receipts. Unidentified credits are the most useful finding: each one is a customer who paid and whose ledger still shows them as owing.
This entry describes the practice. MatruOS records cash, UPI and bank payments against invoices; it does not connect to bank feeds today.