Bank reconciliation: A bank reconciliation statement

A bank reconciliation statement is a document used to reconcile the balances of two accounts. Learn more about its importance & format in this article. Learn what bank reconciliation is, why it’s important for your business, and follow simple steps to perform accurate and timely bank reconciliation. Learn how to compare and adjust the cash balance on a company's balance sheet with the bank statement using a bank reconciliation statement. See the reasons for the difference, the steps to reconcile, and an example with journal entries. Bank reconciliation is a process of comparing a company’s bank statement with its own cash records (often called its “cash books”) to make sure the balances and transactions match.