reconciliation accounting definition

Reconciliation in Accounting refers to the process of comparing and matching financial records from two different sources, such as bank statements and accounting books, to ensure accuracy and consistency. The goal of reconciliation is to identify discrepancies, resolve errors, and confirm that the balances in the records are in agreement. This process helps businesses maintain accurate financial reporting, prevent fraud, and ensure compliance with accounting standards. Regular account reconciliation is essential for accurate financial management, helping organizations stay on top of cash flow, taxes, and financial performance.