When is it common for companies to perform bank reconciliations?

Companies typically perform bank reconciliations at the end of each month because this timeframe aligns closely with financial reporting and helps ensure accuracy in financial statements. Monthly reconciliations allow businesses to verify that their cash records match the bank's records, which is critical for identifying discrepancies such as unauthorized transactions, bank fees, or errors in recording deposits and withdrawals.

This practice supports effective cash management, helps in maintaining accurate financial reporting, and is essential for preparing for monthly closing processes. While some organizations may perform reconciliations on a more frequent basis, such as weekly, this is less common for most businesses given the typical rhythm of financial operations and reporting. Therefore, monthly reconciliations provide a structured and manageable approach for most companies to maintain their financial integrity.