Bank Reconciliation

Bank reconciliation is the process of comparing the accounting records of a company with corresponding information from a bank statement. It contains details about the a bank account of a bank account.

Bank statements are used by account holders to monitor their finances. The bank reconciliation statement can help identify any discrepancies between the cash book and the bank passbook. 

Accounting software is used by many businesses to ensure proper account reconciliation of their transactions and accounting records. Bank reconciliation statements are used by organizations and institutions to keep transactions in check and avoid any discrepancies in the future. It can help detect fraud, locate errors and rectify discrepancies in tax reporting.

You need to examine the deposits, adjust balances, tweak the cash account and analyze balances to reconcile a bank statement. The essential purpose of a bank reconciliation is to detect error including missed payments, double payments, and calculation errors; keeping track of and recording bank fees and penalties; keeping tabs on the payables and receivables of company. 

Bank reconciliation can be made simpler and error-free by using accounting software. Users will be able to quickly match and classify many transactions with the automatic import of bank transactions resulting in more practical and manageable  bank reconciliation process.