Collect the bank statement and the company cash book for the same period
Compare the ending balances of both records
Match all deposits recorded in the cash book with deposits shown on the bank statement
Match all withdrawals, checks, and payments recorded in the cash book with bank statement entries
Identify outstanding checks issued but not yet cleared by the bank
Identify deposits in transit recorded in the cash book but not yet shown by the bank
Note bank charges, interest, NSF checks, and other bank-side adjustments
Note any errors in the cash book or bank statement
Adjust the cash book for all identified differences
Prepare a bank reconciliation statement
Verify that the adjusted cash book balance equals the adjusted bank balance
Investigate and resolve any remaining differences