reconciliation accounting

Reconciliation in accounting is the process of comparing two sets of financial records to ensure consistency and accuracy. Typically, this involves matching internal records, such as a company’s general ledger, with external statements like bank statements or vendor invoices. The goal of reconciliation is to identify discrepancies, correct errors, and verify that all financial transactions are accurately recorded. Regular reconciliation helps businesses maintain financial accuracy, comply with accounting standards, detect fraud, and prepare for audits, ensuring the integrity of financial reporting.