Bank account statements checked with the company’s account records ensure the accuracy of your records through the use of the Bank Reconciliation Statement (BRS), an essential accounting tool. This procedure finds any differences resulting from mistakes, unreported transactions, or bank charges.
Widely used accounting tool TallyPrime streamlines the BRS process with its quick and easy interface. This detailed instruction will help you traverse the BRS in the TallyPrime process.
Step 1: Setting Up TallyPrime
Make sure your TallyPrime program is correctly configured before entering the BRS process:
1. Install TallyPrime
Using the official Tally Solutions website, download and install the most recent TallyPrime version.
2. Create or open a company
Launch TallyPrime and form a new firm or open an existing one where you wish to execute the BRS.
Step 2: Configure bank accounts
Starting the reconciliation process requires you to set up your TallyPrime bank accounts:
1. Navigate to the gateway of tally
From the main page, navigate to “Gateway of Tally > “Accounts Info”‘ > “Ledgers'” > “Create.”
2. Create bank ledger
Enter the name of your bank and choose “Bank” as the group. Complete the required information including account number, IFSC code, opening balance.
3. Save ledger
Press ‘Ctrl + A’ to save the ledger following data entry.
Step 3: Enter bank transactions
Accurate reconciliation requires you to enter all bank transactions into TallyPrime:
1. Record receipts and payments
Visit “Gateway of Tally > Accounting Vouchers”. Record payments with “F5: Payment,” then receipts with “F6: Receipt.”
2. Enter transaction details
Complete the pertinent information including date, amount, and bank ledger. Make sure every financial transaction is exactly noted.
Step 4: Access the bank reconciliation screen
Access the Bank Reconciliation screen to initiate the reconciliation process once all bank transactions are noted:
1. Navigate to bank reconciliation
From the “Gateway of Tally,” follow “Display More Reports” > “Account Books” > “Cash/Bank Books.”
2. Select bank ledger
Choose the bank ledger you wish to reconcile from 2.
3. Open reconciliation screen
Press “F5: Reconcile” to view the Bank Reconciliation Screen open.
Step 5: Reconcile bank transactions
Two columns on the Bank Reconciliation screen will show transactions from your bank statement and ones entered in TallyPrime.
1. Match transactions
Examine every TallyPrime transaction against the matching transaction on your bank account. Verify the sums and dates line up.
2. Mark transactions as reconciled
For every matched transaction, put the bank statement date in the “Bank Date” box. This renders the transaction reconciled.
3. Identify discrepancies
Should there be any disparities—that is, transactions entered into TallyPrime but not shown on the bank statement—search and fix them.
Step 6: Record unrecorded transactions
You must insert any transactions you notice on your bank statement that do not show in TallyPrime:
1. Enter missing transactions
Enter missing transactions using the suitable voucher type (Receipt, Payment, Contra, etc.). Go to “Gateway of Tally> “Accounting Vouchers”.
2. Reconcile new transactions
Enter the bank statement date and return to the Bank Reconciliation page to reconcile New Transactions following recording of the missing transactions.
Step 7: Generate bank reconciliation report
Create a Bank Reconciliation Report to guarantee all is accurate once all transactions have been reconciled:
1. Generate report
Press “alt + P” on the Bank Reconciliation screen to launch the print menu. Choose “Bank Reconciliation,” then arrange the report options as necessary.
2. Review and save report
Review the report for correctness then print it for your records or save it.
Step 8: Save reconciliation
Save the reconciled data once the reconciliation procedure is finished:
1. Save changes
To save the reconciliation, press ” Ctrl + A”. With the reconciled transactions, TallyPrime will change the bank ledger.
Step 9: Regular reconciliation
Regular bank reconciliations help to keep accurate financial records:
1. Set a schedule
Create a plan for consistent reconciliations based on your transaction volume—that is, either monthly, bi-weekly.
2. Stay consistent
Recording and reconciling transactions consistently helps to avoid disparities and guarantees that your financial records are always current.
Common issues and troubleshooting
You may run across some typical problems doing BRS with TallyPrime. These are some troubleshooting ideas:
1. Unmatched transactions
Should you come across unmatched transactions, verify the transaction information in both TallyPrime and your bank statement twice-wise.
2. Missing transactions
Make sure TallyPrime records every transaction. Missing ones should be noted. Review with your bank statement.
3. Date discrepancies
Check to see whether TallyPrime’s transaction dates line up with those on your bank statement:
Conclusion
In TallyPrime, bank reconciliation is a simple process guaranteed to ensure financial record correctness. Following this method-by-step approach will help you effectively balance your bank transactions, spot errors, and preserve correct accounting records. Apart from accurate financial reporting, regular reconciliation supports good cash flow management and financial planning.
Learning the BRS process in TallyPrime can help you improve accounting efficiency and guarantee consistent and current accuracy of your financial records. Whether your firm is tiny or you work as an accountant, TallyPrime’s strong capabilities streamline the reconciliation process so you may concentrate on your main operations.
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