TIPS TO ENSURE EFFICIENT BANK RECONCILIATION

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First, it's essential to have all the required documentation and information in hand. That means, if all the required documentation and information are at your disposal you get a better view of things.

Second, avoiding common errors, such as:
a. Error relating to duplication of entries.
b. Not accounting for a transaction that would cause a difference equal to the missed amount
c. Errors while entering commas and dots, which cause discrepancies that, could be of significant value. For instance, instead of entering LRS 3,502.40, enter LRS 350.24.
d. Transposition errors while entering figures in the books. For instance, instead of entering LRS 661,300, enter INR 616,300.

Third, it is possible that your bank might have committed a mistake. They might debit incorrect amounts from your account, or credit deposits which doesn't belong to you. For this reason, in case you find errors for which you don't find any explanations, or for which you're in doubt, the best thing is to consult your bank.

Forth, listing differences and reconciling them and then forgetting it is possible. In case differences keep on accumulating with no action taken, your bank reconciliation would become meaningless. It is needed that a constant check is kept on the reconciled transactions so that they are reflected in the right way in the bank column of the cash book and in the bank statement.

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