Define: Bank Reconciliation

UK Accounting Glossary

Definition: Bank Reconciliation


Quick Summary of Bank Reconciliation


This refers to comparing the business’ bank balance with a bank statement to spot differences.



What is the dictionary definition of Bank Reconciliation?

Dictionary Definition


A bank reconciliation is the process of matching the balances in an entity’s accounting records for a cash account to the corresponding information on a bank statement. The goal of this process is to ascertain the differences between the two, and to book changes to the accounting records as appropriate.


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Full Definition of Bank Reconciliation



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Examples of Bank Reconciliation in a sentence


She was responsible for cash, and bank reconciliation.

Preparing bank reconciliation reports and cash reports.

Their role was to prepare bank reconciliation statements for approval by the Financial Directors.

The employee responsible for the bank reconciliation has identified a number of questionable items.

To perform daily work effectively, such as payment, report, bank reconciliation, etc.

Please provide true certified copies of the required documents, alongside a statement of bank reconciliation.

The software also includes a bank reconciliation feature that can reconcile up to six different bank accounts.


Bank Reconciliation FAQ's


What is bank reconciliation statement

Assets = Liabilities + Equity to the corresponding amount on its bank statement. Reconciling the two accounts helps determine if accounting changes are needed. Bank reconciliations are completed at regular intervals to ensure that the company’s cash records are correct.

What are the steps to perform a bank reconciliation?
  1. Comparison
  2. Add Deposits
  3. Outstanding Checks
  4. Bank Errors
  5. Check Register Reconciliation
  6. Interest Earned
  7. Check Register Errors
  8. Journal Entries
  9. Compare Both Statements

Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/bank-reconciliation/
Modern Language Association (MLA):
Bank Reconciliation. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 20, 2019 https://payrollheaven.com/define/bank-reconciliation/.
Chicago Manual of Style (CMS):
Bank Reconciliation. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/bank-reconciliation/ (accessed: September 20, 2019).
American Psychological Association (APA):
Bank Reconciliation. PayrollHeaven.com. Retrieved September 20, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/bank-reconciliation/

Definition Sources


Definitions for Bank Reconciliation are sourced/syndicated from:


This glossary post was last updated: 26th December 2018.