A bank reconciliation compares the amount of cash shown on the monthly bank statement with the amount of cash reported in the general ledger.

Monthly bank reconciliations help you:

• Identify errors, irregularities, and unauthorized transactions to the Cash account.

• Identify lost deposits or stolen checks

• Manage your cash account with greater efficiency. Reconciling your cash will uncover any bounced check so that you can remedy it quickly & timely.

• Better management of the cash account leads to more accurate and better accounting in general

• Manage your cash more effectively. Proper management of funds not only saves money, it makes money for you.