What is full form of BRS?
Bank Reconciliation Statement:
BRS is a statement that is made to tally bank balance as per bank with bank balance with books of accounts. After knowing BRS full form, now we are going to discuss about detail information of bank reconciliation.
Why do bank reconciliation?
- To tally balance:
Mostly companies do bank reconciliation to tally bank balance with bank balance of books of accounts. It is so important to tally these balance so that employer could not do any kind of fraud cash handling.
- To check accuracy and error of entry:
It is so important to do bank reconciliation timely. It is useful to check the accuracy and error in books of account regarding to bank entries. Apart from that, it is also notify the accountant about any kind of error by the bank’s employee.
How to do bank reconciliation in tally?
If you want to do bank reconciliation in tally software, it is so simple to do. Firstly, we would like to explain, what tally software is, it is a software that is used to maintain book of accounts of a company by using it, you can create invoice, maintain inventory and conduct bank reconciliation. These are following steps to conduct bank reconciliation in tally.
Firstly, you should have print out of bank statement. Then, open tally software by clicking right on it.
The second step of doing bank reconciliation is to open the leger of that particular bank for which you want to do bank reconciliation. Here, shortcut of opening Léger is DEL, you have to press DEL, then you will go the leger screen, then you have to write the bank name and the press enters.
The third step is that open the bank Léger. The next step is to press F5 button. After pressing this button, you will have the bank reconciliation screen in which every transaction have two dates, first is transaction date and second is bank date. Now what you have to do to conduct bank reconciliation, you have to put bank date in bank date column and do some entry like bank charges, bank interest etc.
Advantage of conducting BRS:
- Bank reconciliation provides accurate snapshots of cash situation:
Reconciliation is the only document that provides the accurate and true snapshots of cash situation of a company. It is very helpful for company to know what is the situation of cash of the company’s bank account so that company can create strategy and plan according to cash.
- Error and Fraud Detection:
It is one of the statements that is useful to detecting of error to any business. These error can include addition and subtraction of errors, double payment errors etc. Apart from common error, bank reconciliation is also useful to detect fraud. It is the helpful document that tells you the hidden story about the funds, cash etc. If the employee tries to do any kind of fraud regarding bank transaction, he can be caught by doing proper bank reconciliation.
In this process, he can be caught because bank reconciliation shows the detail about every transaction. If there will any kind of fraud bank reconciliation show it then employer can do detail investigation and can detect the faulty employee.
- To book bank charges and other entry:
One of the advantages of doing bank reconciliation is that omitted entry can be ascertained through bank reconciliation. Apart from that there are some entries that are done by bank like bank charges, direct payment to vendor etc. it should be recorded in books of accounts. These entries are book while doing bank reconciliation.
- To check accuracy:
As you know brs full form is bank reconciliation statement. it is one of the best ways to check accuracy of accounting eatery related to bank transaction. If bank statement balance tally with bank balance of books of accounts. It means that everything is on and accurate.
Other BRS full form:
♦ Borad Review Series
♦ Big Red Switch
♦ Blue Ribbon Sports
♦Binaural Room scanning