Glossary
Bank reconciliation
Bank reconciliation is comparing your records with the bank statement line by line to explain any difference between them.
What it means for a shop owner
It uncovers fees you did not record, cheques not yet cashed and card amounts not yet received. Do it at least monthly. An unexplained gap means an error or something to check.
A worked example
Your book says 5,000 and the bank says 4,800. 150 is an uncashed cheque and 50 is a bank fee, so the 200 gap is fully explained.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes