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It is important to reconcile the records in your account with the report that the bank has provided to you. There are several reasons for this. One is that you can see if the bank has made a mistake in your account. You might find deposits or withdrawals that you have not made. You might also find that you have made a mistake in your own records. I is possible to add or subtract incorrectly, or to enter a deposit or withdrawals incorrectly.
If you don't have accurate information about the amount of money in your account, you cannot make accurate financial choices.
Wiki User
∙ 16y ago
Wiki User
∙ 9y agoIt is important to reconcile your bank statements monthly. One reason for doing this is to make sure there are no erroneous charges or unauthorized withdraws.
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Why a bank reconciliation necessary?
why a bank reconciliation necessary
What is bank reconciliation statement?
Bank Reconciliation Statement
What are the types of bank reconciliation?
types of bank reconciliation
What is the purpose of a bank reconciliation?
Main purpose of bank reconciliation is to rectify the errors or differences that may occur between bank balance as per bank statements and bank balance as per our books of accounts to bring the both balances at one amount and tally each other normally at the end of month.
What are the types of reconciliation?
types of bank reconciliation
How should unrecorded bank services charges be treated on the bank reconciliation?
On a bank reconciliation. What should the amount of an unrecorded bank service charge be?
When should a bank reconciliation be prepared?
A bank reconciliation should be prepared to reconcile the accounts in the company's books and those at the bank. This is usually done using bank statements.
What Need and importance of bank reconciliation statement?
* Bank reconciliation statement ensures the accuracy of the balances shown by the pass book and cash book. * Bank reconciliation statement provides a check on the accuracy of entries made in both the books. * Bank reconciliation statement helps to detect and rectify any error committed in both the books. * Bank reconciliation statement helps to update the cash book by discovering some entries not yet recorded. * Bank reconciliation statement indicates any undue delay in the collection and clearance of some cheques.
Is the Bank Reconciliation statement a part of financial statement?
Bank reconciliation statement is not part of financial statement it is the helping statement to tally bank account with balance in banks statement.
Why should a bank reconciliation be prepared periodically?
A bank reconciliation should be prepared periodically. This helps you keep up with the exact amount in your account and with any fees the bank is charging.
What is the definition of bank reconciliation?
A bank reconciliation is a routine / process / method, etc, by which you reconcile the bank's balance of your account to your balance of your account as of a specific date. (Helps you make sure what think you have, is what the bank thinks you have.)
Who prepares the bank reconciliation statement?
accountant
