reconcile meaning in accounts

Reconcile in accounts refers to the process of comparing two sets of financial records to ensure they match and are accurate. Typically, it involves matching a company’s internal records, such as the general ledger, with external documents like bank statements. The goal of reconciliation is to identify any discrepancies, such as errors, omissions, or fraud, and correct them. Reconciliation ensures that financial statements are accurate and that all transactions are properly recorded, helping businesses maintain reliable financial data and comply with accounting standards