define reconciliation accounting

Reconciliation in accounting refers to the process of comparing two sets of financial records to ensure their accuracy and consistency. Typically, this involves matching a company's internal financial records, such as the general ledger or bank statement, with external documents like bank statements, credit card statements, or vendor invoices. The goal of reconciliation is to identify and correct discrepancies, ensuring that all financial transactions are recorded correctly. It helps maintain the integrity of financial data, supports accurate reporting, and ensures compliance with accounting standards.