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What is the importance of bank reconciliation?

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Question added by Shamna Mohammed Ali , Accountant , Almoayed Chambers
Date Posted: 2014/10/22
Owen Gatehi
by Owen Gatehi , Head of Finance , Kapitol Services Co.

A bank reconciliation is necessary for the following:

to balance the cash & bank ledger.

to reduce/manage overdraft

cashflow management

asif imran naseer
by asif imran naseer , A.M Accounts, Aduit & Taxation , Sports Star International (PVT) LTD (Atv& APlus Entertainment TV Channels)

Bank Reconciliation IS THE DEMAND OF A ACCOUNTS PROFESSION AND ACCORDING TO MY EXPERIENCE IS SHOULD BE DON ON WEEKLY BASIS.

IT IS NOT ONLY IMPORTANT TO RECONCILE THE RECORDS BUT ALSO TO RECONCILE YOUR DEBTORS AND PAYABLES

 

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