What are the steps involved in the bank reconciliation process?

"In order to complete a bank reconciliation, a bank statement or export file of bank activity needs to be obtained for the prior month. The bookkeeper should enter the ending bank balance in the accounting software. Next, the bookkeeper should check off the transactions that have cleared the bank. There may be some transactions that need to be added to the general ledger, such as bank charges. If the reconciliation ties out to the bank balance, the reconciliation is complete. If not, differences should be investigated."

The process of completing a bank reconciliation is simple. First, you need to obtain all the bank activity for the period in question. Second, enter the ending bank balance into your software. Next, all the transactions need to be verified. If the reconciliation matches the bank balance, it is complete. If it doesn't match, the differences need to be investigated further.