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What is the bank reconciliation? why is it important for companies to prepare bank reconciliation periodically?

What is the bank reconciliation? why is it important for companies to prepare bank reconciliation periodically? 

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Expert Solution

A bank reconciliation statement is a summary of banking and business activity that reconciles an entity's bank account with its financial records.

Importance of BRS

The main use of preparing a Bank Reconciliation Statement is to detect any discrepancies between the accounting records of the company and the bank due to normal timing differences. Such discrepancies might exist due to an error on the part of either the person , whether it may be entity or bank.

A bank reconciliation statement is a summary of banking and business activity that reconciles an entity's bank account with its financial records.

Junaid answered 2 years ago
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