Why does a company need to conduct a bank reconciliation?
A company needs to complete a bank reconciliation in a timely fashion for various reasons: 1. Finding fraud in case someone is hiding unauthorized transactions 2. Track funds, fees, and penalties 3. Accurate record-keeping for receivables and accounts payable 4. Detect various problems like missed payments or doubled transactions Overall, the process helps double-check all of the financial statements a company will use for future financial decisions and even for raising funds.