reconcile definition accounting

Reconcile definition in accounting refers to the process of comparing two sets of financial records to ensure they are consistent and accurate. This typically involves matching internal records, such as a company’s general ledger, with external documents like bank statements or credit card transactions. The purpose of reconciliation is to identify discrepancies, correct errors, and verify that all financial transactions are recorded properly. Regular reconciliation helps maintain accurate financial records, ensures compliance, and prevents fraud, making it a critical practice for businesses to manage their finances effectively.