Bank reconciliations are an essential process for any company that handles financial transactions. This process consists of comparing the company's internal financial records with the external bank records to ensure that both parties agree.

Reconciliation is a process used to compare two data sets to ensure they are consistent and in agreement. These discrepancies may result from human error, unrecorded transactions or unauthorized bank charges. Once differences are identified, steps should be taken to correct them and ensure that internal and external records agree.