Bank reconciliation is the process of comparing a company's financial records with its bank statements to ensure accuracy. This involves checking that all transactions, such as deposits and withdrawals, match between the two records. Any discrepancies must be identified and resolved to maintain accurate financial reporting. The reconciliation process helps detect errors, fraud, or unauthorized transactions. It typically occurs monthly, allowing businesses to keep their accounts up to date. By regularly performing bank reconciliations, companies can ensure their financial statements reflect their true financial position and maintain trust with stakeholders.