BANKING AFFAIRS

Detailed explanation-1: -When you “reconcile” your bank statement or bank records, you compare it with your bookkeeping records for the same period, and pinpoint every discrepancy. Then, you make a record of those discrepancies, so you or your accountant can be certain there’s no money that has gone “missing” from your business.

Detailed explanation-2: -Reconciling a bank statement involves comparing the bank’s records of checking account activity with your own records of activity for the same account.

Detailed explanation-3: -Bank statement reconciliation is the process of comparing your bank statement to your accounting books. Here’s how it works. Typically, you record check and cash transactions in a check register, which is part of your general ledger. The bank has a similar record of your business checking account.

Detailed explanation-4: -A bank reconciliation statement compares a bank statement with the balance of the company’s accounts with the balance in the bank statement.