5 steps of bank reconciliation

Finding the perfect match isn’t always easy, especially when it comes to business transactions! Let’s say you check your records at the end of a certain period, and while calculating your total figures and cross-checking them with your bank statement, something doesn’t add up.

There’s a mismatch between your cash balance and your bank statement.

Bank reconciliation statement rules

While this is common, you have to identify these differences and reconcile them to ensure your transactions match.

A bank reconciliation is when you compare your cash inflow and outflow (your cash balance in your ledger) with your bank records for a certain period, and make adjustments to match them.

The discrepancies between the two could be due to many reasons, including errors you’ve made while entering an amount, duplicate entries, a payment that’s yet to clear, or even bank interests and fees. When you check these and reconcile them, you can verify your transactions for that period and ensure that your records are accurate, with everything accounted for.

Through bank

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