Def - Checkbook Reconciliation

A Checkbook Reconciliation is a balancing of two sets of records:

  • A Bank Statement, supplied by the bank
  • The financial records recorded in your system. 

A checkbook reconciliation is a useful financial control to confirm the checkbook control accounts within the general ledger are accurate and to protect against fraud. Reconciliations are useful for explaining the difference between two financial records or account balances. Some differences may be acceptable because of the timing of payments and deposits. Unexplained or mysterious discrepancies, however, may warn of fraud or bad accounting practices. Companies may reconcile their records daily, monthly, or annually.