define reconciliation accounting

Reconciliation accounting is the process of comparing and aligning financial records to ensure accuracy and consistency. This involves matching a company's internal accounting data, such as bank statements or ledgers, with external records like bank or credit card statements. Discover the importance of reconciliation in preventing errors, detecting fraud, and ensuring compliance with financial reporting standards. Learn how proper reconciliation helps maintain accurate financial statements, supports effective decision-making, and ensures your business remains financially healthy.