Bank Reconciliation

• Bookkeeping
• Bank Reconciliation
• Financial Statement

Bank Reconciliation

When a company receives its bank statement, the company should verify  that the amounts on the bank statement are consistent or compatible with the  amounts in the company's Cash account in its general ledger and vice versa. This process of confirming the amounts is referred to as reconciling the bank  statement, bank statement reconciliation, bank reconciliation, or doing a "bank rec." 

The benefit of reconciling the bank statement is knowing that the  amount of Cash reported by the company (company's books) is consistent with the  amount of cash shown in the bank's records.

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