What are the important things to be remembered while preparing a bank reconciliation statement?

I think the major things is make SURE all the entry made in your bank book either its ERP or manaul system , then you can make the normal cycle in reconcile the bank SOA.

you must have the bank statement for that period

Its just a work of comparison of2 statements, ie your books vs bank statement, make sure the followings:

1. Closing balance of last month and opening balance of the current month should match with the last reconciliation.

2.  If there is multiple amounts with the same figure, match it by cheque numbers. 

3. Sometimes you or banker might miss or round the figures, so take additional care when u comeacross odd figures with cents/paise/fills.

4. Make sure u are matching with the Debit against Credit and vice versa.

5. Keep one statement as a base, either your statement or bank statement, start from that, and go1by1 datewise...dont mix up..

Other things like issued but not presented, deposited but not cleared all bla..bla...bla...you know what to do...:) 

the most important thing that you should review the bank deposit slip to be confirm that the account  # is correct

 To check the total and balance : The total of the bank column of the Cash Book should be checked whether there is any mistake in totaling orbalancing. Comparison of amounts: Each amount of Cash Book must be compared with the concerned amount recorded in pass book. If there is any difference, the difference  should be noted down separately. Date: Items of Cash Book must be compared with the items of Pass Book only  up to that date on which BRS is prepared. Starting and Ending Point: Bank Reconciliation Statement is prepared by taking the balance either as per Cash Book or as per Pass Book as starting point.

 

> Opening & closing  balances of bank statement & cash book should be teleyed.

> Make sure that all payments entered by ERP or through manual in your books.

> All the transactions on the bank statement should be reflected in the cashbook and those transactions appearing in the cashbook

> If there any intransit cheques should be add back in reconciliation statement.

> Error of omission: If there any payement shown debit in bank and not in cash book enter in cash book which left by missing or omitted in an accounting entry.

(1) To check the total and balance : The total of the bank column of the Cash Book should be checked to find out whether there is any mistake in totaling or balancing. (2) Comparison of amounts: Each amount of Cash Book must be compared with the concerned amount recorded in Pass Book. If there is any difference, then this difference should be noted down separately. (3) Specified Date: Items of Cash Book must be compared with the items of Pass Book only up to that date on which Bank Reconciliation Statement is prepared. (4) Memorandum Book if any memorandum book has been kept for keeping record on incoming cheques and outgoing cheques, it must be seen thoroughly. (5) Starting and Ending Point: A Bank Reconciliation Statement is prepared by taking the balance either as per Cash Book or as per Pass Book as starting point. (i) If the statement is started with the balance as per bank column of the Cash Book, the answer arrived at the end will be the balance as per Pass Book. (ii) Alternately, if the statement is started with the balance as per Pass Book, the answer arrived at the end will be the balance as per Cash Book. (6) Balance as per Cash Book: Balance as per Cash Book is also known as Cash Book balance. This balance is really the bank column of Cash Book maintained by the customer. (i) When total of debit column is more than total of credit column of bank column (account) in the cash book it is known as debit balance. In other words, Debit balance of Cash Book means the amounts are lying with the bank or deposited with the bank. It is also known as favorable balance or credit balance as per Pass Book. (ii) When credit balance of cash book is given it is treated as overdraft as per Cash Book i.e., withdrawals are in excess of deposits. It is also known as unfavorable balance or overdraft balance as per Cash Book or Pass Book. (7) Balance as per Pass Book: Bank keeps an account for each customer. The amounts which are deposited by the customer are recorded in the credit column of his account in Bank's ledger and the amount withdrawn by him are recorded in the debit column of his account in Bank's ledger. Many other amounts are recorded both in the debit and credit column of his account as per instruction of the customer. (i) When credit balance is more than debit balances, it is called credit balance as per Pass Book or only Pass Book balance. This indicates that the customer has so much balance of deposit at the bank. It is also known as favourable balance. (ii) When debit balance is more than credit balance, it is called debit balance as per Pass Book or overdraft as per Pass Book. This indicates that the amount has been withdrawn in excess of the deposit. It is also known as unfavourable balance. (8) Effect of Debit or Credit : (i) If Cash Book is debited it means increase in the balance of Cash Book whereas if it is credited then it decreases the balance of Cash Book. (ii) If Pass Book is debited, it means decrease in the balance of Pass Book or increase in the overdraft balance where credit increases the balance or decreases the overdraft balance.

Bank reconciliation statement is a report which compares the bank balance as per company's accounting records with the balance stated in the bank statement. 

Following important things to be remembered while preparing a bank reconciliation statement.

* Amount credited in Passbook but not in Cash book. * Deposits made in the bank directly. * Direct payments made by bank not entered in Cash book * Cheques issued but not presented for payment. * Cheques dishonoured not recorded in cash book * Interest credited in the Passbook but not entered in Cash book. * Wrong credits given by bank. * Wrong debits given by bank