BAI2 file format is a specialized and standardized set of codes used for cash management by the Bank Administration Institute (BAI). BAI2 files come to an account holder from a bank. The account holder then imports the files to a bookkeeping application and performs bank reconciliation if necessary.
Bank reconciliation is a process that resolves the difference between the balance on a bank statement and the corresponding amount shown in an enterprise's accounting records. One of the most common applications of the BAI2 file format involves the transmission of returned-check data by a bank to an account holder, an event that nearly always triggers a call for bank reconciliation.Content Continues Below