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.
Similar Accounting Articles:
- Bank Reconciliation Statement
- Reconciliation Process
- How to Prepare Bank Reconciliation Statement
- Illustrations of Bank Reconciliation Statement (Example & Formula)