As a business owner, it’s crucial to prepare a bank reconciliation statement for your company. Bank account reconciliation statement helps companies address errors that can negatively impact their financial and tax reporting. It is also an essential way to prevent and detect errors and fraud. It is also a simple process to help companies manage cash flow. What is a bank reconciliation process? Bank reconciliation is the process that ensures that the cash balances in their books match the cash in their bank account. If these two balances don’t match, a bank account reconciliation statement will help you know the reason for these discrepancies. There is no exact time to prepare a bank account reconciliation statement. However, many bookkeepers prefer reconciling bank accounts on a periodic basis. Why is a bank reconciliation statement prepared? Various reasons are responsible for preparing bank account reconciliation statements. These include: Identifying errors Accounting errors, suc