A balance confirmation letter asks a customer or supplier to confirm the balance between you on a specific date. It states the date, the balance and its direction (who owes whom), asks the recipient to reply “we agree” or “we do not agree”, and, if they do not agree, to send their statement so the difference can be found.
What the letter must contain
- Your company name and the recipient's company name and account code.
- The confirmation date (for example 31 December).
- The balance, its currency and its direction: receivable from or payable to the recipient.
- A clear request: confirm, or state your balance and send your statement.
- A reply deadline and the contact person for questions.
- A signature or authorised approval line.
Template text
Subject: Balance confirmation as of [date]
Dear [name], according to our records, as of [date] the balance of your account with us is [amount] [currency] in [our / your] favour. Please confirm whether you agree with this balance by [reply date]. If your records show a different balance, please state your balance and send us your account statement for the same period so that we can identify the difference. Kind regards, [name, title, company].
Following up the replies
- Send letters to the right person: accounts payable for customers, accounts receivable for suppliers.
- Track who has replied, who agreed and who did not.
- For every “we do not agree”, compare the two statements line by line and list the items that explain the difference.
- Send a reminder before the deadline to those who have not replied.
- Keep the replies; auditors will ask for them.
Frequently asked questions
Is a balance confirmation the same as an audit confirmation?
It is similar. In an audit confirmation the auditor sends the request and receives the reply directly; the content is the same.
Can the confirmation be done by e-mail?
Yes. E-mail or a reply link is common practice; what matters is that the reply comes from an authorised person and is kept.
What if the counterparty never replies?
Send reminders and, if possible, reconcile using their statement or portal data; record the outcome for your auditor.
Start with one account. If the differences are not clearer than in your spreadsheet, you have lost nothing.
Start free trial →Last updated: November 14, 2026 · mutabakat.com