What is a bank reconciliation statement?

A bank reconciliation statement is a form that allows individuals to compare their personal bank account records with the bank's records of the individual's account balance in order to uncover any possible discrepancies.

Since there are timing discrepancies between when data is entered in the bank's systems and when data is entered in the individual's system, there is sometimes a normal discrepancy between account balances. The goal of reconciliation is to determine whether the discrepancy is due to an error rather than timing.