How Do You Do a Bank Reconciliation?

To conduct a bank reconciliation, first, gather the company’s records, including bank statements and transaction records. Then, compare each transaction listed in the bank statement with the corresponding entries in the company’s records, noting any discrepancies. Finally, adjust the records to reflect accurate balances by reconciling outstanding checks, deposits in transit, bank fees, and any other differences, ensuring consistency between the company’s financial records and the bank statement.