| div class="googleright"> | | | | from two reasons: |
| To keep a record of your bank statement of your | | | | - The time of the recording of the transactions in your |
| business up-to-date is very necessary for business. | | | | book and bank account |
| This process and track record enables business | | | | - The error made by bank or business |
| owner to produce their own financial reports as and | | | | General ledger of the company contains the |
| when it is needed. It will also helpful in analyzing | | | | transactions of checks written, cash receipts from |
| business position in market and also helps to make | | | | customers etc. On the other side, the bank is also |
| some necessary decisions for business. | | | | creates a record for these transactions. After a |
| Now, what is Bank Reconciliation? Bank Reconciliation | | | | proper time, usually bank mails the bank statement to |
| is comparison between the accounting figures that | | | | the company in one month period. This statement |
| have been recorded and bank statement, reconciliation | | | | shows the transactions have been taken place during |
| between the cash book and bank statement normally | | | | the particular month and also a bank balance. |
| known as the difference. The difference can arise | | | | |