Bank reconciliation is crucial, especially at the close of an accounting month. Yet, it often takes considerable time, sometimes several days or even up to two weeks, to resolve discrepancies between the bank system and accounting records.
These discrepancies can consume valuable time as executives navigate complex ERP systems, multi-currency banking portals, and various reporting tools. However, by implementing unified transaction monitoring across global operations, reconciliation evolves from a time-consuming back-office task into a strategic asset.
This blog will delve into the bank reconciliation process, its benefits, and how it enhances financial accuracy and decision-making for global enterprises.

Definition and Purpose of Bank Reconciliation

Bank reconciliation is comparing and matching the transactions in a company's financial records (such as the general ledger) with those in its bank statement.
Bank reconciliation ensures that the company’s cash records are accurate, consistent, and up-to-date. This process involves reviewing all deposits, withdrawals, fees, and other transactions recorded by the bank and the company.
Missed transactions, bank fees, or errors in recording deposits and withdrawals are some common discrepancies during bank reconciliation.