Bookkeeping & Reporting

Reconciliation

Reconciliation is the process of comparing two sets of records and explaining any differences.

Quick answer

Reconciliation is the process of comparing two sets of records and explaining any differences.

It matters because mismatched records are often the first sign that cash, revenue, or expenses are wrong.

A company may reconcile its accounting records to a bank statement at month end.

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Plain-English Definition

What Reconciliation means

Reconciliation is the process of comparing two sets of records and explaining any differences.

Why it matters It matters because mismatched records are often the first sign that cash, revenue, or expenses are wrong.
Simple example A company may reconcile its accounting records to a bank statement at month end.
Related Questions

Questions people ask about Reconciliation

What does Reconciliation mean?

Reconciliation is the process of comparing two sets of records and explaining any differences.

Why does Reconciliation matter?

It matters because mismatched records are often the first sign that cash, revenue, or expenses are wrong.

What is a simple example of Reconciliation?

A company may reconcile its accounting records to a bank statement at month end.

When should I ask a CPA about Reconciliation?

Ask a CPA when the term changes how your books are kept, how reports are read, or how tax numbers are produced from accounting records.

How is Reconciliation different from Bank Reconciliation?

Reconciliation means Reconciliation is the process of comparing two sets of records and explaining any differences. Bank Reconciliation means A bank reconciliation is the process of matching book records to the bank statement and explaining differences. The difference is that they apply to different tax, accounting, or business situations and should not be treated as interchangeable.

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