What is a balance sheet reconciliation

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A Practical Perspective

From a practical viewpoint, a reconciliation statement helps you avoid overdrafts and associated fees. It’s unlikely the balance shown in a checkbook or savings register will agree with the one on a reconciliation statement. Unrecorded fees or credits, data entry errors, and transactions that occur after the statement date contribute to differences. Just as using the statement to resolve these differences squares your accounts, ignoring these differences can lead to substantial variances between the book and bank balances.

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Source: ehow.com

Category: Forex

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