Matching your books to the bank statement, and what to do when they disagree.
Here is an uncomfortable truth: your books say one cash balance, and the bank statement says another. Almost always. This is normal — and the monthly ritual of explaining the difference, line by line, is called bank reconciliation. It is the single most common task given to a new junior accounts person, which makes this lesson one of the most directly employable pages on this site.
The three kinds of difference
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