Reconciliation

Reconciliation is the process of comparing a bank statement with the bank ledger (chart of account) entries to correct any discrepancy in the book of accounts. All the companies perform reconciliation to ensure that the accounting is in line with the actuals.

In traditional reconciliation processes, physical bank statements are compared with the entries recorded in the books. Now, reconciliation can be done automatically on a regular basis with easy access to online bank statements.

Related Terms

• Revenue
• Realized Gain or Loss
• Retained Earnings
• Recurring Journal
• Receivable Turnover Ratio
• Retainer Invoice