Bank reconciliation is a critical financial process that ensures the accuracy and integrity of an organization’s cash records. It involves comparing the company’s internal ledger with its bank statements to identify and resolve discrepancies such as outstanding checks, deposits in transit, or bank fees. Regular reconciliation helps detect errors, prevent fraud, and maintain up-to-date financial data. By aligning book balances with actual bank activity, businesses gain a clearer view of their cash position, enabling smarter budgeting and more confident financial decision-making.
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