There is no substitute for a correct bank account reconciliation. It is one of the most important steps in the entire accounting process. If the bank account balance on your books does not agree with the ending balance on the bank's statement you may have serious problems and will not be able to get an accurate picture of your overall financial condition. That is why it is most important to do a complete and correct bank reconciliation each time you receive a new bank statement. Before attempting to generate any periodic financial report it is always advisable to reconcile the bank account(s).