Reconciliation refers to the comparison of two sets of records to verify their accuracy and consistency. In other words, this accounting task confirms that the amount of money leaves an account only when it has been spent, thus ensuring no transaction goes unaccounted for.
It has various purposes such as error identification, fraud detection as well as maintaining correct financial statements. Through reconciliations, both organizations and individuals can ensure that each deal is recognized and recorded appropriately, thereby enhancing transparency in finance reporting.
