Bank Reconciliation is the process of comparing a company’s bank statements and internal records to ensure accuracy between the two. It involves identifying differences, analyzing them, and taking corrective action to rectify any discrepancies. The goal is to make sure that money entering and leaving the bank is accurate, current and complete. Bank Reconciliation helps businesses maintain accurate financial records and keeps their finances organized. It also provides essential information about cash flows and helps detect fraudulent activity. Executing an effective Bank Reconciliation Process is an indispensable part of successful financial management.