Bank reconciliation statement is an official report that justifies the variances between the balance in the bank statement and the balance in the balance sheet of the company. Among the adjustments listed include outstanding checks, deposit on transit, bank charges, interest earned as well as errors. The statement will be useful in verifying the accuracy of financial records and to maintain proper cash management. This statement is regularly prepared by businesses i.e. on monthly basis in order to sustain financial transparency. An aptly made bank reconciliation statement minimizes fraudulent risks, enhances accuracy of bookkeeping and gives a certainty that the balance of cash recorded is accurate.