Cash reconciliation is an internal control that is mostly used by organizations to ensure that the amounts they have in their accounts matches the figures that they record in their books. The amounts recorded in the company’s books and what is recorded as the bank’s balance for the company; do not match in most cases. One reason why the figures do not match is because by the time the bank statements are issued out; other checks may be outstanding or even the deposits being in transit to the bank. Additionally, the figures may not be able to match due to certain errors made by the company’s accountants during the recording process. It is therefore important that the company carries out a cash reconciliation process so that the figures recorded in its books can match the figures recorded by the bank.
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