Question

Reconciling your bank statement is

Answer 1

Reconciling your bank statement is simply comparing your records to your monthly banking statement sent to you by your financial institution for any discrepancies or errors

Answer 2

When someone reconciles their bank statement they are comparing and adjusting their checking account balance with the account balance that the bank sends them. It is normal to find discrepancies between an individual's or a business's account balance with the account balance that the bank issues mainly because of:

1. deposits in transit: you may have deposited some checks in your account but the bank hasn't recorded the money yet
2. outstanding checks: checks that you handed out but haven't been cashed yet
3. bank fees (e.g. printing fees, etc.)

When you perform a bank statement reconciliation, you are checking that your account balance is correct.