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Bank Accounting Reconciliation

The first reason you need a bank reconciliation is that it helps you to analyzes your business as it is and see what can be done to make it better. When you view or dig into your accounting books, you will get the reality of your accounts. In case, your bank account and books do not match, you might spend money that you donu2019t have and hence it keeps you aware amount the exact amount that you have. And this is one of the basic reasons that make bank reconciliation accounting very important for businesses.

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Bank Accounting Reconciliation

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  1. What is Bank Reconciliation Accounting? The term bank reconciliation is nothing but the settlement between a bank and its customers. To make abank reconciliation, you need to equalize the cash balances on the balance along with the corresponding amount on your bank statement. To record both the cash as well as bank transactions, business enterprises prefer to maintain a cash book. This whole process of maintaining the record and bank transaction is known as bank reconciliation.

  2. Why you need Bank Reconciliation? The first reason you need a bank reconciliation is that it helps you to analyzes your business as it is and see what can be done to make it better.  The next big thing that makes you need a bank reconciliation is that it allows you to track cash flow.  With bank reconciling, you will remain much aware of the funds as your bank statements.

  3. Importance of Bank Reconciliation Accounting The most important job ofbank reconciliation accountingis to detect fraud early and prevent errors from occurring in the first place.  It helps in creating correct general ledger. Using reconciliation will increase efficiency, and strengthen internal control around cash.  Using bank reconciliation, businesses can prevent errors and allows accounting to be closely aligned with business by way of offering a pertinent amount of information in real-time to the stakeholders. 

  4. Conclusion To improve the overall financial stability of the business, and to keep in tune with your business cash flow it is necessary to reconcile bank statements

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