Bank Reconciliation Statement

A bank reconciliation statement is the document that attempts to reconcile the company's bank account with its financial records. In that sense, it is the restoration of friendly relations between a company's banker and a company's accountant through the agreement on the deposits, withdrawals, and financial activity impacting a bank account every month and beyond (usually monthly and then annually).

The bank reconciliation statement gives a summary of a company's income versus expenditures from two sources to provide a concise picture of the company's financial health. Or lack thereof.