What happens during the process of reconciling your bank account?

During the process of reconciling your bank account, you compare your personal financial records, such as your checkbook register, against the bank statement provided by your financial institution. This comparison is essential for ensuring the accuracy of your records and identifying any discrepancies, such as errors in transactions, unaccounted fees, or outstanding checks. By carefully reviewing both documents, you can determine if your account balances align and address any issues that may arise, such as unauthorized transactions or missed deposits. This practice is crucial for maintaining accurate financial management and ensuring that you have a clear understanding of your financial status.