Accounting – Bank Reconciliation

Accounting – Bank Reconciliation

Bank reconciliation is a crucial accounting process. It ensures the accuracy of financial records by comparing internal accounts with bank statements. This document outlines the key steps and best practices for effective bank reconciliation.

Bank Reconciliation Process

Gather Documents – Collect bank statements and internal financial records. Ensure all transactions for the period are included.

Compare Balances – Check the ending balance on the bank statement against your records. Note any discrepancies.

Identify Differences – Look for outstanding checks, deposits in transit, and bank fees. Record these items.

Adjust Records – Update your internal records with any missing transactions. Correct any errors found.

Regular reconciliation prevents fraud and maintains accurate financial reporting. It’s recommended to perform this task monthly.

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