Bank Reconciliation Process FAQs What is Bank Reconciliation Process? Bank reconciliation process is the practice of comparing a company’s bank statement records to its internal accounting records in order to ensure accuracy, verify transactions, and identify discrepancies between the two sets of records. Why is Bank Reconciliation Important? Bank reconciliation is important because it helps companies track their finances accurately and promptly, minimize errors and frauds, detect errors in record-keeping or irregularities like unauthorized transactions or miscalculations, and stay compliant with tax regulations. How often should a Bank Reconciliation be performed? Generally speaking, bank reconciliations should be completed on a monthly basis to ensure accuracy and timely updates. What are the Benefits of Bank Reconciliation? The benefits of bank reconciliation include increased transparency and accuracy in financial records, improved cash flow management, better control over finances, reduced risk of fraud or mismanagement, and compliance with tax regulations. Who is Responsible for Performing a Bank Reconciliation? Generally, the responsibility for performing a bank reconciliation falls on an individual designated as the “bookkeeper” or accountant within the company. It is important that this person has a thorough understanding of accounting principles and procedures to be able to perform the task accurately and efficiently. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.