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Needs And Importance Of Bank Reconciliation Statement

Bank reconciliation statement is an important technique by which the accuracy of the bank balance shown by the pass book and cash book is ensured. The need and importance of bank reconciliation statement can be summarized in the following points.

* Bank reconciliation statement ensures the accuracy of the balances shown by the pass book and cash book.
* Bank reconciliation statement provides a check on the accuracy of entries made in both the books.
* Bank reconciliation statement helps to detect and rectify any error committed in both the books.
* Bank reconciliation statement helps to update the cash book by discovering some entries not yet recorded.
* Bank reconciliation statement indicates any undue delay in the collection and clearance of some cheques.

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