Importance of Bank Reconciliation Statement

There are several needs of preparing a bank reconciliation statement as it is important in many terms described as under:-

  • A bank reconciliation statement is used to measure errors and mistakes done by the accounting personals and accounting software both at bank and company’s end
  • Bank reconciliation statement is a measure of undue delay in the clearances and the deposit of the cheques
  • It is a tool to detect cheatings for example sometimes a cashier may made entries in the cash book but never deposit the cash in the bank. A bank reconciliation statement is used to scrutinize and find such cheating attempts.
  • It is used to tally the entries made in the cash book with the entries made in the account of the company with bank.

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