BANK STATEMENT RECONCILATION

Bank statement reconciliation is a process of comparing the transactions recorded in your accounting records with those on your bank statement. This ensures that your financial records accurately reflect your actual bank transactions.

  1. Collect Documents:
    • Gather your bank statements, canceled checks, deposit slips, and any other documents related to your bank transactions.
  2. Access Accounting Records:
    • Open your accounting software or ledger where you record financial transactions.
  3. Start with Opening Balances:
    • Verify that the opening balance in your accounting records matches the beginning balance on your bank statement for the given period.
  4. Check Deposits:
    • Compare the deposits recorded in your accounting records with the deposits listed on your bank statement. Ensure that all deposits are accounted for.