Bank Reconciliation

It is important that you maintain different ledgers in order to classify the third-party funds that you are holding according to the customer and ledger to which they belong. You will have at least one ledger for each of your clients, but in most cases you will maintain multiple ledgers per client. Bank reconciliation is the first step towards managing those client ledgers. In this step, you are ensuring that every bank transaction is recorded in one of the ledgers, which is a necessary step towards ensuring that you have a complete picture of funds held on behalf of your clients.