The letter that is sent by the bank or any other financial firm to their clients as a part of inspection and check and balance process of their corporation is known as the balance confirmation letter. Banks use this letter to verify if their statements match with the books that customers or account holders keep along with the confirmation before crediting or debiting a big amount in or out of their accounts. When there is an official audit in the bank, the auditors might ask the bank administration to send balance confirmation letters to all of their account holders in order to make sure there is no error or mistake in the financial statements prepared by the bank officials.

Brief Description of Balance Confirmation Letter:

It is very obvious to understand that the key purpose of a balance confirmation letter is to ask the customer to confirm if the balance in their personal books matches with the financial statements that the bank prepares on periodic basis i.e. every month or three times a year. There are different types of balance confirmation letters. For example, when there is a big check comes in bank for withdrawal, before deducting anything from the account, bank confirms with the client if he did issue the check and if he verifies the amount on the check. Another type of confirmation letter is when the bank is asked to transfer a big amount into another account and before doing so; the bank manager writes this formal letter to the account holder and asks him to confirm the amount and account number.

On the other hand, when there is an audit going on in the bank, the auditors might require seeing if the ledgers match with the account holders’ books. With the confirmations and replies sent by the accounts holders, it is very easy to locate any mistake or error. Banks also send random balance confirmation letters to their account holders in order to make sure that the bank ledgers are showing the same amount as the customers’ books.

Sample Balance Confirmation Letter


Denial Smith


Western International bank

San Francisco


Mr. Jeremy Donald

Account number: 548-592-14889-19483-001

Date: 24 August, 2015

Subject: balance confirmation letter for annual audit


Dear Mr. Donald,

I hope you are fine and doing well. I am writing this letter in order to inform you that we are conducting annual audit at our bank and it’s the time of the year when we ask our account holders to take a couple of minutes out of their busy schedules and confirm the balance in their accounts so that we can match it with our ledgers and make sure there is no error.

You are the account holder in our bank with the account number 548-592-14889-19483-001 and you opened this account on 31 March, 2008. As of today, our ledgers and audit reports are showing a balance of $594,900 in your account and we would like you to check your personal books and confirm this figure at your earliest convenience.


Denial Smith


Western International Bank

Related Sample Letters

  • Audit Confirmation LetterAudit Confirmation Letter Audit is a process in which a third party is hired in order to inspect accounts and financial statements of a company or organization. Audit confirmation letter is a formal notification that is sent to all the involved parties in the process. With this letter, the client can prepare their management for the audit where on the other hand, it gives specifics about the audit to the […]
  • Sample Bank Confirmation LetterSample Bank Confirmation Letter The letter from the bank confirming that a client or customer of the bank has secured a line of credit is known as the bank confirmation letter. Also known as the letter of bank confirmation is the official notification released by the bank for their customer in order to approve and verify that their customer has enough credit in his or her account in order to go through a financial […]
  • Sample Confirmation Letter for EmployeeSample Confirmation Letter for Employee When you apply for a job in an organization, before starting your work as a permanent employee, you need to go through a specific process. This includes several stages and the final letter of confirmation from the administration or management of the organization confirming that you are hired as an employee. This letter is known as the confirmation letter for employee or an appointment […]
  • Income Confirmation LetterIncome Confirmation Letter If you want to get a credit card, the bank or credit card company has to make sure that you are capable of handling the amount of credit that you requested for and you earn enough money to make the credit payments afterwards. For this purpose, the credit card applicants are asked to verify their income from their employer or some banks also contact the employers directly and ask them […]
  • Internship Confirmation LetterInternship Confirmation Letter After completing the studies, when students or fresh graduates want to do an Internship in a company for their credit score, they are asked to send an application. If the company accepts the request, a notification is sent to the applicants in return. This notification is called the Internship Confirmation Letter. Basically it’s an Appointment Letter for the interns but due to the […]

Leave a Reply

Your email address will not be published. Required fields are marked *