It is a process in which a comparison is made between the economic values that an organization has registered in its bank account and the bank movements made by it, in addition to this, bank reconciliation also allows the accounting book to be classified and compared with bank statements supplied by banks on a monthly basis. All this is done in order to locate the differences and be able to apply the necessary corrections, to have a correct balance of the company's account statements.
The process of bank reconciliation is done through the " subledger " which is where the company records every move, as do banks, who each month are responsible for sending their customers a state detailed account, where They show all the movements made by said organization, then we proceed to verify that all the data supplied by the bank coincide with those that the company has registered in the book, if not, the reason for the difference is analyzed.
Generally, the statements provided by the banks do not coincide with those recorded in the accounting book of the company, this occurs due to the time differences in which the movements are recorded, since it may happen that a certain company made economic movements, such movements were already registered in the journal, while the bank has not yet registered since this is recorded weekly and hence the data does not match.
Some of the most common causes that arise at the time of reconciliation are checks issued by the company, which have not been cashed by the person who received said check. Credit notes that the bank has already recorded on the balance sheet but that the company has not done yet. Errors when recording the values and concepts in the accounting book, the bank may also present errors of this type.
When making the comparison between the data that the company has and that of the bank, it is always recommended to use as a point of reference those issued by the bank since they are official figures, therefore they are considered more reliable.
