Reconciling your bank accounts each month has several benefits: The Benefits of Reconciling Your Bank Account If you find any errors or omissions, determine what happened to cause the differences and work to fix them in your records. This is accomplished by scanning the two sets of records and looking for discrepancies. The goal of bank account reconciliation is to ensure your records align with the bank’s records. Many banks allow you to opt for fee-free electronic bank statements delivered to your email, but your bank may mail paper bank statements for a fee. In the case of personal bank accounts, like checking accounts, this is the process of comparing your monthly bank statement against your personal records to make sure they match. What Is a Bank Reconciliation?īank reconciliation is the process of comparing accounting records to a bank statement to identify differences and make adjustments or corrections. Here’s a look at what it means to reconcile your bank account, why it’s important and how to do a bank reconciliation. Regardless of how you do it, reconciling your bank account can be a priceless tool in your personal finance arsenal. Reconciling your bank statement used to involve using a checkbook ledger or a pen and paper, but modern technology-apps and accounting software-has provided easier and faster ways to get the job done. Using this simple process each month will help you uncover any differences between your records and what shows up on your bank statement. One way to keep accurate records is through bank reconciliation. Keeping accurate records of your bank transactions can help you determine your financial health and avoid costly fees.
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