Accounts knowledge

When the company receives its bank statement branch wise , the company should verify that the amounts on the bank statement are consistent or compatible with the amounts in the company's branch Cash account in its general ledger and vice versa. This process of confirming the amounts is referred to as reconciling the bank statement, bank statement reconciliation, bank reconciliation, or doing a "bank rec." The benefit of reconciling the bank statement is knowing that the amount of Cash reported by the company (company's books) is consistent with the amount of cash shown in the bank's records.