Accounting
Reconciliation
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Reconciliation means comparing two sets of records to make sure they agree. The most common type is bank reconciliation — comparing your internal records with the bank statement.
If your books show $25,000 but the bank says $24,200 reconciliation helps find the difference — maybe an uncleared check or pending deposit.
Regular reconciliation prevents fraud, catches errors early, and ensures accurate financial statements. Most businesses do it monthly.