WHY DO

This statement helps the account holders to check and keep track of their funds and update the transaction record that they have made. A bank reconciliation is used to compare your records to those of your bank to see if there are any differences between these two sets of records for your cash transactionsThe ending balance of your version of the cash records is known as the book balance while the banks version is called the bank balanceIt is extremely common for there to be differences between the two balances which. Bank Reconciliation Statement Definition Explanation Example And Causes Of Difference Accounting For Management Bank reconciliations provide the necessary control mechanism to help protect the valuable resource through uncovering irregularities such as unauthorized bank withdrawals. Why is bank reconciliation statement necessary . Bank reconciliation is incredibly important for a number of reasons. To create a reconciliation statement companies need to compare their i...