Bank reconciliation is the process of comparing and reconciling the financial records of an organization with the records of its bank. This process is essential for ensuring the accuracy and completeness of an organization’s financial statements. Bank reconciliation involves identifying and resolving discrepancies between the organization’s records and the bank’s records, such as errors in recording transactions, timing differences, and bank fees. The process typically involves reviewing bank statements, check registers, and other financial records to identify discrepancies, and then making adjustments to the organization’s records as necessary. Bank reconciliation is a critical component of financial management, as it helps to ensure that an organization’s financial statements are accurate and reliable, and that the organization is able to identify and address any potential issues or discrepancies in a timely manner.
