What Is the Definition of Bank Reconciliation Statement?

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A bank reconciliation statement means that a person is carefully tracking the cash flows in and out of their business compared to what actually happened. Review transactions electronically with help from a portfolio manager in this free video on money management and personal finances.

Part of the Video Series: Investing & Money Management
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Video Transcript

Do you have an account at a bank or a stock brokerage firm. Hi this is Roger Groh at Groh Asset Management. Frequently there is money coming in and out of those accounts maybe in a money market fund or your writing checks or using a credit card or may there dividends that are being paid from the money market fund its self or other assets that you own, but the point is that there is a lot of activity. Do you reconcile that activity? if you do reconcile it than your doing bankReconciliation statements all that means is that your carefully tracking the cash flows in and out the business compared to what you know actually happened. Frequently there are mistakes and its worth your time and effort to review any transactions or event thats happened in your own account you can do this electronically in a lot of cases if you use quicken or some of the other basic programs once you've set it up you can automatically reconcile that against what actually happened in the account and it will tell you if there is something that hasn't matched you can then go review what that non matched item is. Its worth the time and effort. I'm Roger Groh with Groh Asset Management thank you very much for spending time with me.

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