Bank reconciliation is the process of comparing the Council’s internal financial records (such as the cashbook) with its bank statements and is an important part of the Parish Council’s financial management process. It helps ensure that the Council’s financial records match the actual transactions in its bank account. and is undertaken - usually monthly - to identify and resolve any differences between the two.

✅ Accuracy – It ensures that income and expenditure are recorded correctly.
✅ Transparency – It provides clear evidence that public money is being managed responsibly.
✅ Fraud Prevention – It helps identify unauthorised or suspicious transactions early.
✅ Good Governance – It supports compliance with audit and regulatory requirements.

Each month, the Responsible Financial Officer checks that all payments, receipts, and balances recorded in the Council’s financial system match the entries on the bank statements. Any discrepancies such as uncashed cheques or bank charges are highlighted and explanations reported.

The reconciliation is then reviewed and signed off by a rotating member of the Parish Council as part of our internal control procedures. This helps maintain transparency and accountability in the handling of public money.