What it proves
Treasury and accounting use bank reconciliation to confirm that recorded cash matches what banks report. Unexplained differences may indicate fraud, posting errors, or timing items that need classification before period close.
Typical steps
Match cleared items by amount and reference, list deposits in transit and outstanding checks, investigate breaks, and post adjusting entries after approval.
Operating account September
| Item | Amount |
|---|---|
| GL cash 1010 | $4,218,440.12 |
| Bank per statement | $4,205,890.12 |
| Explained timing | $12,550.00 |