Causes Of Bank Reconciliation Needs To Be Done

What is meant by bank reconciliation is a process of adjusting information on transaction records or cash. The adjustment process is carried out on a company’s cash records that are compared with bank cash records. Bank reconciliation can also mean an activity detailing possible differences between the bank’s and the company’s cash records. Notes from a bank that acts as a transaction manager will be compared with records belonging to a company. The notes being compared are in the form of a bank statement or what is commonly referred to as a checking account. Furthermore, bank reconciliation will be carried out when the bank’s expense records are not realized with the balance of accounts held by customers. Examples of such items are check writing and service fees. Therefore you need a how to become a bookkeeper to record all financial agendas to be safe.

When performing a bank reconciliation, all transactions that occurred in a certain period will be shown. If in the bank reconciliation process there is a difference in the amount of the balance, the accountant needs to prepare an adjusting journal based on these findings which are considered valid and credible. Of course, an accountant who prepares the adjusting journal from the bank reconciliation process has a very important role so that financial statement information can be accounted for. For this reason, the accountants’ accuracy and precision are tested in this bank reconciliation process.

However, the customer does not know the activities of the bank until the checking account is received. When this happens, bank reconciliation is required. Bank reconciliation is also necessary when making deposits on the way. The point is when the bank receives and records month-end financial deposits in the depositors’ book within one month. Another cause of bank reconciliation is when the customer or bank makes a recording error. Because of this recording error, the bank and the customer have different balances. So, when this happens, bank reconciliation is necessary so that the error can be eliminated.

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