Reconciling your bank statements simply means comparing your internal financial records against the records provided to you by your bank. This process is important because it ensures that you can identify any unusual transactions caused by fraud or accounting errors.

What is the purpose of reconciling?

Purpose: The process of reconciliation ensures the accuracy and validity of financial information. Also, a proper reconciliation process ensures that unauthorized changes have not occurred to transactions during processing.

What are 3 important reasons to reconcile?

1) To verify transactions have the correct date assigned to them. 2) To verify that an account balance is within its credit limit. 3) To verify that all transactions have been recorded for the period.