What is bank reconciliation?
Bank reconciliation refers to the process of matching internal financial records with bank statements to ensure accuracy.
Why is bank reconciliation important?
It identifies discrepancies such as missing transactions or errors. Regular reconciliation improves financial control.
How often should bank reconciliation be done?
Many businesses perform reconciliation daily or monthly depending on transaction volume.
What causes reconciliation differences?
Differences arise from timing delays, bank fees, errors, or missing entries.
Can bank reconciliation be automated?
Yes. Many software tools automate reconciliation, reducing manual effort and improving accuracy.