Explain why it is important for a business to prepare a bank reconciliation statement on a monthly basis?
submitted by Mike Czech

jacob

To compare what the business issued with what's on the statements. It helps you find any discrepencies between your account and their records. You may find you've lost money at some point, but frequent reconciliations will allow you to quickly find the exact problem, allowing you to work with the bank to get it resolved. Likewise, you may have a discrepency on your end, like if an employee is embezzling money. Doing a bank rec will help you identify those problems.