In bookkeeping, bank reconciliation is the process by which the bank account balance in an entity’s books of account is reconciled to the balance reported by the financial institution in the most recent bank statement. Bank reconciliation should be completed at regular intervals for all bank accounts, to ensure that a company's cash records are correct. Otherwise, one may find that cash balances are insufficient, resulting in bounced checks or overdraft fees. Bank reconciliation will also help detect instances of fraud. This information can be used to design better controls over the receipt and payment of cash. The presentation gives better understanding on the topic.

Saranya R Kurup

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