reconcile definition for accounting

In accounting, reconciliation refers to the process of comparing two sets of financial records to ensure they are accurate and consistent. It typically involves matching the balances in an organization's accounting records with those in external documents, such as bank statements, credit card statements, or supplier invoices. The goal of reconciliation is to identify and correct any discrepancies, ensuring that the company’s financial statements are accurate. This process is essential for maintaining the integrity of financial reporting, preventing errors, and ensuring compliance with accounting standards