A bank reconciliation is a process of matching the transactions recorded in the cashbook (whether it be manual or electronic) to the items listed on the bank statement. It ensures that no transaction is omitted from the cashbook record and that correct amounts have been entered.
Do the reconciliation each time you receive a statement.
The Money Management for Community Groups booklet, which is available free of charge from WYCAS covers how to do a bank reconciliation.
Posted in: Recording