Bank Reconciliation Statement (BRS) like a routine accounting task, and one of the most important checks you can do to keep your books accurate. BRS is prepared to match the bank balance with cash book with the bank statement.
In this blog, I’ll explain what a Bank Reconciliation Statement is, why it’s necessary for every business, and how you can easily do it in Tally ERP 9 or Tally Prime. I’ve also included some handy shortcut keys that I personally use to make the process quicker.
What is a Bank Reconciliation Statement (BRS)?
A Bank Reconciliation Statement (BRS) is just a way to check if the bank transactions in Tally match with actual bank statement. Ideally, both should be the same but in real life, often small differences are found.
This can happen due to:
- The cheque you issued, hasn’t cleared yet.
- Bank charges or interest haven’t been entered.
- A wrong date or amount entered in your books.
- Transactions done through net banking that weren’t recorded.
Why Is BRS Important?
Let me share a quick example from my own experience.
A client of mine once called me, worried because their Tally balance showed ₹2,30,000 in the bank, but their actual bank statement had only ₹1,90,000. After doing the bank reconciliation, we found a Cheque of ₹40,000 was issued and recorded in Tally but hadn’t cleared the bank yet. This is exactly why BRS is important. Here’s what it helps with:
- Error Detection & Correction
Helps you catch mistakes like wrong entries, duplicate records, or missing transactions. - Prevents Fraud
You can spot any unauthorized or unknown entries quickly. - Accurate Cash Flow
You’ll always know your actual available balance very useful for daily operations and planning. - Audit & Compliance
A reconciled statement makes your accounts more transparent and audit-ready. - Tracks Bank Charges and Interest
Sometimes, businesses miss recording things like service charges or interest. BRS makes sure nothing gets skipped. - Follow-up on Uncleared Cheques
You can easily track pending Cheques and deposits that are yet to clear. Doing BRS regularly gives you a clear picture of your finances and helps you avoid future surprises.
| What is Tally ERP? Tally ERP 9, now upgraded to Tally prime, is a trusted accounting software used by businesses all over India. It handles everything from accounting and GST to payroll and inventory. One of the features I use frequently is the Bank Reconciliation module. It saves a lot of time and keeps everything in sync with actual bank records. |
How to Perform Bank Reconciliation in Tally?
If you’re using Tally ERP 9 or Tally Prime, here’s how you can do bank reconciliation easily:
Step-by-Step Process
Step 1: Open Your Company in Tally
Go to:
Gateway of Tally → Display → Account Books → Cash/Bank Book → Select the relevant Bank Ledger
Step 2: Access Reconciliation Mode
Press F5 to enter the Reconciliation screen.
Step 3: Enter Bank Dates
For each entry, enter the Bank Date the date when the transaction actually appears in your bank statement.
Step 4: Match Transactions
Compare each transaction with your bank statement. If the amount and date match, enter the date in Tally.
Step 5: Save Changes
Once done, press Ctrl + A to save the reconciliation.
Tally will now show the reconciled balance and list any transactions that haven’t matched yet.
Shortcut Keys for Bank Reconciliation in Tally
I often use these shortcut keys, they make the process faster, especially when there are many entries.
| Shortcut Key | Function |
| F5 | Open Reconciliation Screen |
| F2 | Change Date |
| Ctrl + A | Accept/Save Reconciliation |
| Alt + F1 | Toggle between detailed/condensed view |
| Esc | Exit screen |
| Ctrl + Enter | View/Alter Ledger details |
| Page Up/Down | Go to previous/next voucher |
| Alt + C | Create a new ledger |
| Ctrl + R | Remove Bank Date (to unreconcile) |
| Ctrl + F12 | Use Advanced Filter |
| Ctrl + F | Search inside list (Tally Prime feature) |
Using these shortcuts really helps when you’re working on multiple bank accounts or large data.
Conclusion
I’ve learned over time that bank reconciliation isn’t just a formality it’s actually really helpful in keeping things clear and under control. Whether you’re managing your own business or working on client accounts, doing BRS regularly saves you from last-minute confusion or mismatches.
Tally ERP and Tally Prime have made this process much easier with simple tools and shortcuts that I use all the time. I personally make it a point to do reconciliation at least once a month, and honestly, it’s a small habit that makes a big difference.
FAQ
Q1. Can I import bank statements in Tally for auto BRS?
Yes, you can. Tally allows you to import bank statements in .CSV, Excel, or. OFX format. It will automatically match the transactions wherever possible.
Q2. What if a transaction is not showing in the bank statement?
Just leave the Bank Date empty. It could be a Cheques that hasn’t cleared yet or a transaction the bank hasn’t processed.
Q3. Can I edit or remove a reconciled entry?
Yes, you can. Go to the reconciliation screen and simply remove or change the bank date if needed.
Q4. Does Tally show both matched and unmatched balances?
Yes, it clearly shows both. You can easily see what’s been reconciled and what’s still pending.
Q5. How often should I do BRS?
Once a month is a good habit. But if you have a lot of transactions, doing it weekly is even better.
