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Bank Reconciliation
When the company receives its bank
statement, the company should verify that the amounts on the bank
statement are consistent or compatible with the amounts in the company's
Cash account in its general ledger and vice versa. This process of
confirming the amounts is referred to as reconciling the bank statement,
bank statement reconciliation, bank reconciliation, or doing a "bank
rec."
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Introduction To Financial Accounting And Bookkeeping For
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Accounting for Non-Accountants -
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AccountingAide.com
Easy to find Accounting &
Bookkeeping info, tips, courses, tutorials, books, tools, and resources.
One
of the responsibilities of owning a checking account is keeping it
up-to-date. This includes recording each transaction, keeping a running
balance in your checkbook, and reconciling your checkbook balance with
the with the banks checking account statement each month.
The
only way to unburden yourself of volumes of multi-page bank statements
is to stop spending so much money--which is not such a bad idea. But if
that's simply out of the question, the next best thing is to learn how
to read your monthly bank statement and reconcile it against your
checkbook and savings passbook.
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