Bank errors refer to the mistakes made by the bank while recording a company’s bank balance. These mistakes can include the bank recording an incorrect amount, omitting an amount or recording an irrelevant amount that does not belong on a company’s bank statement. These errors are relatively infrequent in nature and can either increase or decrease the balance per bank. The rectification of these errors has no effect on the balance per books as this error was not made by the company but the bank. These errors are usually highlighted by a bank reconciliation statement.