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Accounting & Tax vocabulary · Bookkeeping & Ledgers

Bank reconciliation

Meaning in accounting & tax, with examples

nounCommon term

In accounting & tax, bank reconciliation means: A regular check that compares the cash balance in a company's books with the bank statement and explains every difference between them.

In Turkish: banka mutabakatı, banka hesap mutabakatı

How it is used

Usually prepared monthly, or daily for busy accounts. Typical reconciling items are cheques not yet cleared, deposits in transit and bank charges not yet recorded.

Example sentences

  1. The bank reconciliation shows a difference of 2,300 lira from an unrecorded bank fee.

  2. Auditors usually ask for the December bank reconciliation for every account.

Common collocations

  • prepare a bank reconciliation
  • reconciling items
  • bank statement
  • outstanding cheques
  • reconcileTo compare two sets of records, such as the ledger and a bank statement, to make sure they agree, and to find and explain any differences.
  • month-end closeThe set of tasks accountants complete after each month ends, such as posting accruals and reconciling accounts, so that the month's results are final.
  • general ledgerThe main set of accounts of a business, where all transactions are collected account by account to show the balance of each one.
  • petty cashA small amount of cash kept in the office to pay for minor expenses, such as stamps, taxis or cleaning supplies, without making a bank transfer.

More terms: Bookkeeping & Ledgers

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This page explains English vocabulary for learners. It is not financial advice.