define reconciliation accounting

Reconciliation accounting is the process of comparing and matching financial records, such as company books with bank statements, to ensure accuracy and consistency. This essential accounting practice helps businesses identify discrepancies, prevent errors, and ensure that financial statements are reliable and accurate. Reconciliation is crucial for maintaining financial integrity, supporting proper financial reporting, and ensuring compliance with accounting standards. Learn how reconciliation accounting contributes to accurate financial management and helps businesses stay on track with their financial goals.