Bank reconciliation is the first fraud and cash-control checkpoint. If bank and books do not agree, cash balance, revenue, vendor payments and investor MIS become unreliable.
| Area | What to check | Evidence to save |
|---|---|---|
| Bank statement | Opening/closing balance and all transactions. | Bank statement PDF/CSV and balance confirmation. |
| Books ledger | Bank GL movement and closing balance. | Ledger extract and trial balance. |
| Reconciling items | Unposted receipts, charges, cheques, reversals and timing differences. | Bank reconciliation statement. |
| Exception ageing | Items older than defined threshold. | Ageing report and owner comments. |
| Reviewer sign-off | Prepared/reviewed by and close date. | Signed reconciliation and journal references. |
This article is intentionally source-limited to official India Code, MCA and ICAI material. Source validation date: 17 June 2026. Verify final positions with latest Companies Act, Schedule III, accounting standards, Ind AS/AS applicability and auditor guidance before closing or filing.
It validates cash balance and detects unposted or unusual transactions.
Monthly at minimum; high-volume accounts may need daily/weekly.
Old unmatched items that remain unresolved beyond policy threshold.
Yes. Charges/interest should be recorded promptly.
Someone independent of preparer/payment maker should review.