Why do a Bank Reconciliation

The point of carrying out a bank reconciliation is to check that nothing has been missed from the business’s records and also to ensure that there have been no bank errors.

A business’s cash book will rarely agree to the bank statement and it can be easy to miss transactions, such as direct debit payments if a bank reconciliation is not done.  Similarly, banks sometimes make errors too which may otherwise go unnoticed.

Bank reconciliation is a standard part of bookkeeping.  If you have not done a bank reconciliation as part of your bookkeeping, your accountant’s fees will almost certainly be much higher.  Many accountants will insist on a bank reconciliation having been done prior to their doing your statutory accounts.

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