Bank Reconciliation

Bank Reconciliation is Matching the books to actual bank activity. It comes up most often when money is owed, received, or reconciled and the books have to match the real-world balance.

The term keeps showing up because cash control breaks down quickly when open items sit too long or never tie back to the bank. The term matters because collections, vendor payments, and close accuracy all depend on it.

1. Use Bank Reconciliation to match open balances to actual cash movement before close.

2. Review Bank Reconciliation when the team needs to spot whether receivables, payables, or cash are drifting out of sync.

3. Track Bank Reconciliation so operations can keep settlement work from turning into unexplained month-end noise.