reconciliation business definition

Reconciliation in Business refers to the process of comparing and aligning financial records from different sources, such as bank statements, ledgers, and internal accounting systems, to ensure accuracy and consistency. It helps identify discrepancies, correct errors, and confirm that financial transactions are properly recorded. Regular reconciliation is essential for maintaining accurate financial reporting, improving cash flow management, and ensuring compliance with financial regulations. By ensuring that all financial data is accurate and consistent, reconciliation in business helps build trust, prevent fraud, and support informed decision-making.