What is BRS - Explained
A BRS is a crucial financial statement that compares the bank's records of a company with the company's own accounting records.
Finding a mismatch in the book of accounts, despite meticulous recording of transactions, can pose significant challenges. Mismatches don't pop out suddenly, they hide behind granules of transactions all the time. Accountants undertake the task of reconciling bank statements with the company's accounting records, aiming to identify missing data, such as bank charges or uncleared and cleared cheques. The goal of a BRS (Bank Reconciliation Statement) is to ensure that the two sets of records match and that any discrepancies are identified and rectified.
BRS full form
Bank reconciliation statement is the full form of BRS in accounting. BRS is prepared by the accountants to compare the bank's record of a company with the company's accounting records.
Bank reconciliation statement (BRS) - definition and meaning
The bank reconciliation statement (BRS) is a financial report statement that helps companies ensure that their accounting records match with the bank transaction statement. The bank reconciliation statement format helps in identifying discrepancy between books of accounts and bank records, such as outstanding cheques, deposits in transit, bank fees, interest, or any other errors. Companies prepare BRS daily, weekly, or fortnightly to keep their books accurate with the different BRS formats.Prepare BRS in a click
Benefits of preparing BRS in accounting software
Every accountant has just one wish: not a single penny should go out of their sight. At times, the price paid to achieve it is incomparable. Matching hundreds of e-statement entries with books of accounts tests the patience of matchmakers, here, accountants. Simply put, it demands a huge amount of manual effort, as they are prone to errors.
Tech providers understood the stress and automated bank e-statement reconciliation with accounting software. From then on, tech-equipped accountants started doing wonders with their bank reconciliation format.
Waving goodbye to errors, screen switching (between the BRS sheet and the e-statement), and rechecking
Identifying the missing entries in the book of accounts with a click
Saving up to 90% of the efforts spent on reconciliation
Preparing your own bank reconciliation statement format
By the way, those are the top three reconciliation benefits of preparing BRS with accounting software, enjoyed by the customers of Gofrugal.
Importance of bank reconciliation statement (BRS)
Mismatches in balances can consume time in various ways. To prevent spending time on identifying these mismatches, a bank reconciliation statement (BRS) provides details on where and why the discrepancies occur. Below are a few instances where mismatches commonly happen, resulting in the expenditure of your valuable time.
Cheque issued but not presented
Cheques issued would not have been cleared by the bank. If the status had not been updated in the books, then mismatches would emerge. At times, the receiver would have forgotten to deposit the cheque too.
Bank charges or interests
Until you check bank e-statements, you will not have any clue about these incidents. Banks don't notify these via SMS, either.
Cheque deposited but not cleared
Cheques received from a party or contra cheque transactions would not have been cleared by the bank. Forgetting to update these will cause chaos in your books.
To err is human. If the cleared cheque date in your books is different from the actual cleared date, especially in the case of post-dated cheques, then it's the same as losing your mobile phone in a crowded place. You have to depend on divine luck to locate it.
Even after recording all the payables and receivables, the above will not let your actual bank balance in the e-statement match the bank balance as per your books. Apart from spending time in identifying the mismatches, preparing your format of bank reconciliation statement (BRS) will help in identifying stale cheques and tracking every penny that moves in the company.
The above situations are terrorising when they actually happen. As hackneyed as it sounds, prevention is always better than cure.
Why should you choose Gofrugal for preparing your bank reconciliation statement (BRS)?
Utilizing Gofrugal for Bank Reconciliation Statement (BRS) preparation enables businesses to streamline their reconciliation process by leveraging the following specialized features.
The auto bank reconciliation statement (BRS) assists in downloading the bank e-statement and can be uploaded directly into the accounting software. Entries made in the software will get matched with the e-statement entries uploaded as a statement, and the cleared date will be updated automatically.Know how
GGofrugal went a little further and partnered with ICICI Bank to simplify banking operations. Customers can now download the e-statement within the software, and all it takes is one click to reconcile and find out the mismatches. The effort spent handling the mismatches has become negligible with this integration.Know how
Format of Bank Reconciliation Statement (BRS)
The bank reconciliation statement format includes all the entries of the books maintained in the software, which can be reconciled with the bank statement manually or automatically, and shows the unreconciled entries to avoid any discrepancy between the books and the bank statement. The BRS format typically includes the bank balance as per the statement, the book balance, and the adjustments made to reconcile the two balances. When there is a gap between the realization of cheques after being deposited or any entries that go without being recorded, like interest, SMS charges, etc., these can be easily identified and reconciled while preparing the bank reconciliation statement format. BRS in accounting is thus an inevitable tool to manage finances efficiently for any industry.Experience auto BRS
How to prepare a Bank Reconciliation Statement (BRS)?
Overview of bank reconciliation statement
What is a Bank Reconciliation Statement (BRS)?
A bank reconciliation statement is prepared after tallying the balance in the company's accounts book with that of the bank balance. Thus, the BRS ensures the accuracy of the recorded transactions in the company's accounts book aligning with that of the bank e-statement for a specified time frame.
What is the bank reconciliation statement format?
The BRS format typically includes the bank balance as per the statement, the book balance, cheques that are deposited or issued but uncleared, and the adjustments made to reconcile the two balances.
How to generate a bank reconciliation statement (BRS) easily?
Bank reconciliation statement generation isn't a difficult task, yet it's mandatory to keep your books of accounts clear. BRS can be generated easily with accounting software connected to your POS, which reconciles the bank statement with the books of accounts.
What is BRS in accounting?
Accounting and finance departments, responsible for managing a company's finances, often encounter discrepancies when comparing their books of accounts to the bank statements. Consequently, they need to reconcile the balances between their records and the bank statement, a process that involves preparing a reconciliation statement. This statement for reconciling is known as the BRS in accounting.
How does Gofrugal help in generating a bank reconciliation statement (BRS)?
A statement prepared after tallying the bank e-statement with the book of accounts is the bank reconciliation statement. Once the BRS is prepared, the book of accounts becomes accurate. Gofrugal's integrated accounting software eases the generation of bank reconciliation statements with its special feature, auto BRS. In auto-BRS, all you have to do is upload your bank statement to the accounting software and watch calmly. Gofrugal accounting software will automatically match your transactions in your books of accounts with the bank statement and reconcile the transactions.Try Gofrugal BRS for free