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The Bank reconciliation summary template pulls together every bank account reconciled on the Bank reconciliation template into a single working paper. It shows at a glance which accounts agree to the trial balance, which still have an unexplained difference, and, optionally, how the client's bank covenants are tracking.

Table of contents 

When should I use this template?

Use it once the individual bank accounts have been reconciled on their own Bank reconciliation templates, to bring them together into one overview working paper, and, where relevant, to record and monitor the client's banking covenants in the same place.

Before you start

Make sure the relevant Bank reconciliation account templates have been completed first, since this template pulls its balances from them. If you're tracking bank covenants, have the agreed levels for each covenant to hand.

Background

Like the Bank reconciliation template it draws from, this is a working paper rather than a disclosure note, and isn't shaped by any particular accounting standard.

Steps

  1. Account. Use the account picker at the top of the Account column to choose which bank accounts appear on the summary. It defaults to accounts that fall within your practice's bank account mapping and already carry a completed Bank reconciliation template, but you can add or remove accounts as needed.
  2. TB amount. Calculated automatically from the trial balance, so no input is needed.
  3. Period end balance as per bank reconciliation. Pre-filled automatically from the Total balance reached on that account's own Bank reconciliation template, though you can override the figure here if you need to.
  4. Difference. Calculated automatically as the TB amount less the period end balance above.
  5. Explained difference. A checkbox, ticked automatically once there's no difference, or once the underlying Bank reconciliation template itself shows as reconciled. Otherwise it starts unticked. Once you've confirmed the difference is explained on the account template, tick it here to mark the account as dealt with.
  6. Bank statements & other support docs. Attach evidence for that row.

Once every account has a row, a Total row adds up the TB amount, period end balance and difference columns, and shows a reconciled indicator counting how many accounts still have an unexplained difference.

Covenants

Tick Show/hide covenants to reveal a bank covenants table. For each row, choose a covenant type from the dropdown: Gross assets, Net assets, Retained profits, EBITDA, EBIT, Interest cover, or Other.

  • For every option except Other, enter the agreed Level and the template calculates the actual value from the trial balance automatically. Hovering over the calculated figure explains how it's derived. Broadly, EBITDA and EBIT add back interest, taxation and (for EBITDA) depreciation, amortisation and profit or loss on disposal of fixed assets to the profit-after-tax figure, and Interest cover divides profit after tax by interest expense.
  • Choosing Other gives you free-text rows instead, where you enter your own description, level and value.
  • Either way, the template calculates the difference between the calculated (or entered) value and the level, and marks Breach as Yes whenever that value is higher than the level entered.
  • The Breach test is written for covenants with a maximum limit (for example, "borrowings must not exceed £X"). It only flags Yes when the calculated or entered value exceeds the level. If a client's covenant instead sets a minimum (for example, a minimum EBITDA requirement), read the Breach column the other way round, since the template won't flag a shortfall below the level as a breach.

What flows through to the rest of the accounts/workflow?

This template doesn't feed anything back into the accounts itself. It's a working paper that draws together and evidences the individual bank reconciliations. It's reached via a link shown at the top of each Bank reconciliation account template.

What rolls forward next year?

When you copy data into the next period, the accounts you've selected, the covenants section (whether it's shown, the covenant types and levels you've set up, and any custom Other rows), and the Additional explanation note all carry forward as they are. The period end balance you've entered for each account, and whether a difference has been marked as explained, both reset and need reconfirming each period, since they depend on that period's own Bank reconciliation template rather than staying fixed.

Where the data comes from

The TB amount comes directly from the trial balance for each account you've selected. The period end balance is pulled in automatically from the corresponding Bank reconciliation account template's own Total balance figure (though it can be overridden here if needed), and whether that account already shows as reconciled feeds the automatic tick on the Explained difference column. Everything in the covenants section is calculated from the trial balance except the levels themselves and any Other rows, which are entered manually.

Frequently asked questions

Why has an account appeared on the summary that I didn't add?

It falls within your practice's bank account mapping and already carries a Bank reconciliation result, so it's pulled in as a default. You can remove it if it shouldn't be there.

Why has the Explained difference tick disappeared since last year?

It resets each period so you re-confirm it against that period's figures, rather than carrying forward a decision that might no longer be accurate.

Do I have to complete the covenants section?

No. It stays hidden until you tick Show/hide covenants, unless your practice has configured a file to show it by default.

What if the client's covenant is a minimum rather than a maximum?

See the note in Steps above. The Breach column is built for maximum-limit covenants, so treat a "No" with care if the covenant actually requires a minimum value.