Free tool · Billing documents
Balance Confirmation Letter Generator
Make year-end balance confirmation letters for customers and suppliers, one or hundreds at a time
- Free
- No signup
- Indian rules
Your company
Letter
Party
Ask suppliers for their Udyam certificate
Added to letters with a credit balance
Choose “Save as PDF” in the print window. Each letter prints on its own page. Your company and auditor details are kept in this browser only.
[your company]
To,
[party name]
Subject: Confirmation of balance as on [date]
Dear Sir or Madam,
As per our books of account, your account shows a debit balance of ₹1,25,000.00 (Rupees One Lakh Twenty Five Thousand Only) as on [date], being the amount due from you to us.
Please check this with your books and confirm it by signing and returning the confirmation below to us within 15 days of receiving this letter. If your books show a different balance, please state your balance and attach a statement of account or a list of the items that make up the difference.
This letter only asks you to confirm the balance. It is not a request for payment.
Thank you for your help.
Yours faithfully,
For [your company]
Authorised signatory
Confirmation (to be returned)
To: [your company]
Balance of [your company] as on [date] (your ref. BC/001)
☐ We confirm that our books show a credit balance of ₹1,25,000.00 in your account as on [date], which agrees with your letter.
☐ Our books show a balance of ₹ ____________________ Debit / Credit in your account as on [date]. The items that make up the difference are attached.
Signature and seal, for [party name]
Name and designation
Date
Phone or email
How it works
What this tool does.
Create a balance confirmation letter for a debtor or creditor as on 31 March or any date, with the balance in figures and words, Dr or Cr, and a reply slip for the party to confirm or give its own figure. Paste a list of parties to get one PDF with a letter on each page.
Fill in your company details once; they are kept in this browser for next time. Choose the date the balance is as on, the type of request (positive, negative or blank, as described in SA 505) and whether replies come to you or go directly to your auditors. For one party, enter the name, address, balance and whether it is a debit (the party owes you) or a credit (you owe the party). For many parties, paste a list from Excel with name, balance, Dr or Cr and address. Each letter states the balance in figures and words and ends with a confirmation slip for the party to sign. Download PDF prints every letter on its own page.
Rules and dates last reviewed: October 2026
Balance Confirmation Letter Generator formula
Dr balance in your books = the party owes you, so the party’s books should show a credit balance for you of the same amount. Cr balance in your books = you owe the party, so its books should show a debit balance. Reference number = prefix / financial year of the as-on date / serial number, e.g. BC/2025-26/001.
Worked example
A Coimbatore pump maker closes its books on 31 March 2026. Its auditors want confirmations from 40 customers and 25 suppliers, with replies sent straight to them. One customer, Sharma Traders, owes ₹1,25,000; one supplier, Krishna Packaging, is owed ₹48,350.50.
- Request type: positive, so every party replies whether or not it agrees
- Replies go to: our auditors, with the audit firm’s name, address and email
- Paste the 65 parties from the debtors and creditors lists in Excel: name, balance, Dr or Cr, address
- Sharma Traders’ letter states a debit balance of ₹1,25,000.00 (Rupees One Lakh Twenty Five Thousand Only), the amount due from it, with reference BC/2025-26/001
- Krishna Packaging’s letter states a credit balance of ₹48,350.50 due to it, and asks for its Udyam certificate if it is a micro or small enterprise
- Download PDF gives one file of 65 letters, one per page, each with a reply slip
The company signs and posts or emails 65 letters; replies go directly to the auditors, who follow up any differences.
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Questions
Balance Confirmation Letter Generator, answered.
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What is a balance confirmation letter?
A letter asking a customer, supplier, bank or other party to confirm the balance of its account in your books as on a date, usually the year end. Auditors use the replies as evidence that receivables and payables exist and are correctly stated. SA 505, the ICAI standard on external confirmations, sets out how auditors use them.
What is the difference between positive, negative and blank confirmation requests?
Under SA 505, a positive request asks the party to reply in every case, agreeing or disagreeing. A negative request asks it to reply only if it disagrees, so it gives weaker evidence and suits many small, similar balances where few errors are expected. A blank request leaves the amount out and asks the party to fill in its own figure, which avoids a party signing without checking but usually gets fewer replies.
Should replies come to us or to the auditor?
When the confirmation is part of the audit, SA 505 asks the auditor to keep control of the requests, including making sure replies are sent directly to the auditor. Choose “Our auditors” in that case. For your own year-end reconciliation, replies can come to you.
What do Dr and Cr mean in a balance confirmation?
They describe the balance in your own books. A debit (Dr) balance means the party owes you, as with a customer. A credit (Cr) balance means you owe the party, as with a supplier. The party’s books should show the same amount on the opposite side.
What if a party does not reply?
Send a reminder. If there is still no reply, SA 505 asks the auditor to do alternative audit procedures to get the evidence another way, for example by checking payments received after the year end or the invoices and delivery documents behind the balance.
Why ask suppliers for their Udyam certificate?
Dues to micro and small enterprises are reported separately in the accounts, and late payment to them carries interest under the MSMED Act. Asking with the balance confirmation tells you which suppliers are registered as micro or small enterprises at the year end.
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