A bank reconciliation refers to a procedure where cash exchanges in the books of accounts are, while coordinated, compared with the bank articulation. The reason for this procedure is to align the bank records with bookkeeping records. Various exchanges including installments, bank charges as well as administration charges are put into record in the bank articulation.

Bank reconciliation technique can be used as an internal control tool to help detect misrepresentation and isolate. The customary checking of bank records by use of bookkeeping records guarantees that genuine receipts, as well as installments, are recorded. Likewise, normal check helps to avoid copying of installments, inappropriate bank charges and helps in error screening as well. The bank reconciliation serves as an internal tool by ensuring that all exchanges going into the bank articulation are legitimized and issued by a certified expert. The same records are also recorded in the books of records whereby if any difference emerges, they are posted through the relevant diary passage with the proper authentication.

My opinion is that the person to collect the cash should be a different individual from the one who is dealing with banking affairs. This is because if the same person is assigned to collect the cash, they might manipulate the received and submitted cash. If it is unavoidable to assign the same person then a verification procedure for instance through a signature by a second employee should be in place.