GD Accounting Glossary
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Bank Reconciliation

Matching your books against bank statements to catch missing, duplicate, or erroneous transactions.

Bank reconciliation compares the transactions in your accounting records against the bank statement, line by line, and explains any differences — uncleared payments, bank fees not yet recorded, or genuine errors.

Reconciling monthly is the single best habit for trustworthy books: unrecorded expenses, duplicated invoices, and fraud all surface here first.

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