The advantages of bank reconciliation statement are as follows:
1. It brings out any error committed either in cashbook or in the bank statement.
2. Any undue delay in the clearance of the cheques will be ascertained by the reconciliation.
3. Regular reconciliation discourages staff of the customer or even that of the bank from embezzlement (e.g.-Entries are made in cash book as amount deposited without actual deposit).
