Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What is the purpose of Bank Reconciliation?

user-image
Question added by Sufiyan Raza , Senior Document Controller , Olsen & Partners Interiors LLC
Date Posted: 2015/12/01
Elvie Bumanglag
by Elvie Bumanglag , General Accountant , Al Afia Furnishing LLC

The purpose of bank reconciliation is to ensure that cash balances in your books and the cash balance in your bank are reconciled. To ensure that all cash transactions are reconciled on a daily or monthly basis.

Syed Muhammad Azhar shah
by Syed Muhammad Azhar shah , Account's Receivable Manager , AW poultry Breeder's

Due to Bank Reconciliation we can check and fine out our difference with cash Book and Bank Book, we can check our bank transation's 

Muhammad Tayyab Akhtar SYED
by Muhammad Tayyab Akhtar SYED , Assistant to Finance Manager , Gulf Coverage Insurance and Reinsurance Brokers

Dear bank reconciliation shows the Cash position of your company. 

 

So, if you want to know that all company cash transaction are accordingly.Then you need to reconcile both books. If you do so, you can be able to know where is your company standing and how you will use your cash according to your decision. 

By adding to your question, I would like to tell very interesting that fraud of cash or manipulating of cash can easily be traced by any organization. 

 

I hope this is the answer of the question.

 

Thanks

 

 

reconciliation is important because every company needs to ensure that its recorded cash balance is correct. A daily/monthly reconciliation may also be necessary if you suspect that someone is fraudulently withdrawing cash from the bank account.

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.