Definition of Bank reconciliation:
The action or practice of compiling a document which sets the financial transactions of a business over a certain period of time against the transactions noted on its bank statement over the same period, and details and explains any discrepancies; frequently attributive, especially in bank reconciliation statement.
Analysis and adjustment of differences between the cash balance shown on a bank statement, and the amount shown in the account holders records. This matching process involves making allowances for checks issued but not yet presented, and for checks deposited but not yet cleared or credited. And, if discrepancies persist, finding the cause and bringing the records into agreement.
How to use Bank reconciliation in a sentence?
- The bank reconciliation needed to be performed at the end of the month so we had to work overtime yesterday.
- The bank reconciliation shows that more checks have cleared which I am not showing on my end so I need to review all the info again to ensure accuracy.
- Sometimes you will get a bank reconciliation after there has been a minor error and the bank finally figures it out.
Meaning of Bank reconciliation & Bank reconciliation Definition