step by step bank reconciliation

Step-by-step bank reconciliation is the process of comparing a company’s internal financial records to its bank statement to ensure they match and identify any discrepancies. The steps typically include reviewing the bank statement, checking the company's cash book or ledger for all recorded transactions, and adjusting for any errors or omissions, such as outstanding checks or deposits in transit. This process ensures that cash balances are accurate, helps prevent fraud, and prepares businesses for accurate financial reporting. Regular bank reconciliation is essential for maintaining financial accuracy and compliance.