Bank reconciliation is the process of matching the balances in an organisation’s account to the corresponding information on a bank statement. The objective of this is to ascertain the differences between the two, and post changes to the accounting records. The information on the bank statement is the bank’s record of all transactions, which affects the entity’s bank account during a period.

A bank reconciliation should be process regularly for all bank accounts. This is to ensure that a company’s cash records are correct. Otherwise, it may find that cash balances are much lower than expected. Bank reconciliation will also detect some types of fraud after the fact. This information can be used to design better controls over the receipt and payment of cash.

As part of our operations at SOW Professional, during a reconciliation for a Client in 2017. We discovered N13.4 Million was wrongly paid into their accounts, by one of their Clients (Agency of Government). Ironically, the organization never knew about this until we requested our Client to send a letter to verify this.....https://www.sowprofessional.com/why-your-business-needs-bank-reconciliation/