Question

Explain Bank Reconciliation Statement and

its advantages

Answer 1

A bank reconciliation is a critical part of maintaining accurate financial records for the smooth operation of your company. A completed bank reconciliation statement shows cleared transactions, outstanding transactions and real account balances. The reconciliation process is when you compare your financial records with the statement you receive from your financial institution to verify that both your records and the records of the financial institution are in agreement. You can reconcile any account for which you receive a financial statement. These include bank accounts, credit card accounts and more.