Some of the notable benefits or advantages of bank reconciliation statement can be highlighted as follows:
1. Accuracy Of Balance
The main benefit or advantage of bank reconciliation statement is to know the accurate balance of cash book and passbook.
2. Cause Of Difference
Bank reconciliation statement identifies the causes of differences between cash book and pass book balances.
3. Detection Of Errors And Frauds
Frauds and errors committed in cash book or passbook can be easily detected by preparing bank reconciliation statement.
4. Up-to-date Recording
It provides up-to-date records and information regarding collections and payments which helps to maintain proper accounting system in the organization.
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5. Building Relationship
Preparation of bank reconciliation statement helps to build good relationship with the bank.
6. Transaction Status
It helps to know the transaction status i.e. collection and clearance of checks. It provides information about cashed or uncashed of checks.
