Why is bank reconciliation an accounting practice that businesses do? Even little errors may go undetected if there is no review of transactions. When comparing bank activity to internal records, you can discover payments that have yet to be recorded, duplicate payments and deposits, and unexpected charges. A frequent reconciliation procedure also provides the business owner with a better view of available cash. If there are any discrepancies, explore these and document any changes with evidence. A business should never try to match balances when it is not aware of the reasons for the discrepancy. Regular reviews ensure more reliable financial information and informed decisions regarding budgeting, payments and how finances are managed every day.