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A bank reconciliation is a process of matching the balances in an entity's accounting records for an invoice amount to the corresponding information on a bank statement.
Every company at the end of every month has to perform this process to ensure that the company’s accounting records like the cheque register, general ledger account, balance sheet, etc. are consistent and compatible with bank’s records. In the real world, bank statements are very important documents for any businesses. The companies validate their invoices against the bank statement they received from the banks. This process of confirming the amount in both the company’s ledger and in the bank account is called "Bank statement reconciliation