A bank reconciliation involves matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement. A Bank Reconciliation Statement (BRS) is an essential financial document. It compares the bank balance as per a company’s records to the balance reported by the bank. The purpose is to ensure accuracy and identify discrepancies. Let’s explore its importance, steps to prepare, and common errors. A bank reconciliation statement is a summary of recent banking activity that is used to reconcile personal or business records against the bank's record of transactions. Learn why, how often, and how to do a bank reconciliation, and see an example of a statement. Learn how to prepare a bank reconciliation to ensure that the company's general ledger Cash account is complete and accurate. See the steps, format, terminology, and adjustments for reconciling the bank statement and the company's records.
