Bank Reconciliation
The Accountant's Dictionary
Fri, Jun 19, 2026
A bank reconciliation is the process of matching the cash balance in the general ledger to the bank statement and explaining any differences such as timing items, fees, deposits in transit, or errors.
What Bank Reconciliation means in business operations
Bank Reconciliation is explained here in the context of real finance, payroll, HR, and ERP workflows. This definition is written for business users who need practical understanding that supports implementation, reporting, approvals, reconciliation, and policy decisions.
If you are reviewing related concepts, continue to the The Accountant's Dictionary, browse ERP articles on the Eprecus blog, or explore the Eprecus ERP platform overview.
Bank reconciliation
Bank reconciliation is a core cash-control process. It ensures that the amount shown in the accounting system agrees to the bank, while clearly identifying outstanding cheques, deposits in transit, bank charges, direct debits, and posting errors.
Why buyers and operators care
Cash is the most sensitive balance on the balance sheet. When bank reconciliation is weak, management loses trust in available cash, treasury visibility drops, fraud risk rises, and period-end reporting becomes slower and less reliable.
How teams use it in practice
Accounting teams reconcile each bank account at regular intervals, post the required adjustments into the ledger, investigate aged exceptions, and use the reconciliation as evidence for close controls, audits, and management review.
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