Accounting subject

What is your question? WHY should a bank reconciliation be prepared periodically?

In fact, the reconciliation should be "prepared" REGULARLY to make certain the account is correct both from your standpoint and that of the bank.

Is that your question?

In addition to what JudyKayTee posted a Bank Reconciliation is an internal control to check if you are paying for goods or services that were actually ordered and for the correct amount. Also if someone is writing checks to fictitious venders or not, or if your checks are for unusual amounts.

The bank statement should be mailed to the owner of the company, CEO, or someone other than the person actually doing the reconciliation because a different person than the person that does the reconciliation is reviewing the bank statement. This is to deter the person writing checks to write checks to him or herself, to a fictitious company, or for an unusual amount, which is known as theft and fraud from the company.