One of the examples of bank reconciliation example is the situation when a firm records a balance of $10,000, while the bank statement records the balance of $9,500. The variance could be as a result of unmaintenance of checks of 700 dollars and a bank fee of 200 dollars which are yet to be reflected in the books of the company. Once the cash book is adjusted to take account of the bank fee and outstanding checks are accounted to, the balances balance. In this instance, bank reconciliation is used to detect timing differences and errors. Adjusting the records will allow businesses to have their financial information reflecting real bank balances.