Bank Reconciliation

Bank reconciliation is the process of comparing a company’s internal financial records with the bank statement to ensure that both records match and are accurate. This process helps to identify discrepancies, errors, or fraudulent activity, and ensures that the company’s financial statements reflect true financial positions.
Process to maintain Bank Reconciliation
 
  1. Gather Documents
  2. Compare Balances
  3. Check Deposits
  4. Check Withdrawls and Cheques
  5. Identify Discrepancies
  6. Adjust the Books
  7. Reconcile the Balances
  8. Document the Reconciliation
  9. Regular Review
 
Benefits of Bank Reconciliation
 
  1. Accuracy
  2. Fraud Detection
  3. Error Identification
  4. Cash Flow Management
  5. Financial Integrity
 
Maintaining regular and accurate bank reconciliations is crucial for effective financial management and reporting.