accounting
What is Bank Reconciliation?
The process of matching your business's internal financial records with your bank statement to ensure they agree and catch any discrepancies.
In plain English
Bank reconciliation is a critical accounting control that used to require hours of manual matching every month. Modern accounting software automates the bulk of reconciliation by importing bank transactions daily and automatically matching them to entries in your books. This means reconciling your accounts takes minutes instead of hours, discrepancies are caught quickly, and your financial data is always current. It's also essential for catching fraud, duplicate charges, and bank errors early.