reconcile business definition

To reconcile in business refers to the process of matching and verifying financial records to ensure accuracy and consistency between different sets of data. This typically involves comparing bank statements, financial reports, and internal records to identify discrepancies and make necessary adjustments. The goal of reconciliation is to ensure that the financial statements are accurate and reflect the true financial health of the business. Regular reconciliation helps businesses maintain financial integrity, ensure tax compliance, and avoid errors or fraud in financial reporting.