Accounting Tools notes that companies that participate in end-of-year audits may find it beneficial to complete regular bank reconciliations. Producing regular reconciliations assists in the auditing process and helps to eliminate inconsistencies on end-of-the-year account reconciliations.
Accounting-Simplified.com reports that the completion of bank reconciliations is a tool used by companies to manage cash. When a company employee prepares a bank reconciliation report, the report shows any variances between the bank's records and the company records. It also indicates what amount is pending and if there were any recording errors. A bank reconciliation report notes which discrepancies were satisfactorily resolved. Once the reconciliation report is complete, the company's cash book or financial records is amended to reflect the verified discrepancies and the corrected transaction records. This includes adding items, such as accrued interest and bank fee deductions, to the company's transaction records for the period.
