Video narration
If your spending list and bank app show different balances, does that mean someone made a mistake? Your list records your view of the money; in accounting, that's the cash book. The bank statement is the bank's record of the same transactions. But they don't always update together. So a gap isn't automatically an error. One may show a payment before the other, or an entry may be missing. A bank entry may still need adding to your cash book. Like checking your list against the app, compare what each record includes and explain what hasn't caught up or been recorded. A Bank Reconciliation Statement, or BRS, compares the cash book and bank statement, identifies the differences, and accounts for them. So why did your list and app differ? They updated at different times or missed an entry; reconciliation explains the gap, so the adjusted balances agree.