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Process of adjusting account balances to reflect there fair and accurate amount in accordance with accounting standards
In accounting, reconciliation refers to the process of ensuring that two sets of records (usually the balances of two accounts) are in agreement. Reconciliation is used to ensure that the money leaving an account matches the actual money spent. This is done by making sure the balances match at the end of a particular accounting period.[1]
To ensure the reliability of the financial records, reconciliations must, therefore, be performed for all balance sheet accounts on a regular and ongoing basis. A robust reconciliation process improves the accuracy of the financial reporting function and allows the finance department to publish financial reports with confidence.
To check the books for completion
The process of ensuring that the balances of two accounts are in agreement.
Simply.......in our ledger account will have a 'Bank Account'.....that should be tally with bank statement of each month.....some cases (cheque paid but not deposited, interest charges,omission of entries,amount deposited but not credited etc.) that we can easily identify by compairing bank statement with our bank ledger account. journals needs to be posted if it is necessary.
Reconciling an account often means proving or documenting that an account balance is correct.
This is the process of ensuring the balance in one statement is agreeing with the same statement balance in the respective other parties' records, if we check bank reconciliation statement, due to some transactions the balance in Financial Ledger and Bank will be different, bank reconciliation statement will tell you the list of transaction which is making the difference, These are the transactions which is recorded in one book and not recorded in the other, for example, we record the check payments immediately in our book while the bank will record the payment when the payee submit the check with bank, so the check released and not submitted for payment is one of the items in the bank reconciliation statement.
Reconcile = You have to overview2 things and get them matched.
Question unspecific thus the answer will be...
It is the comparison and correction process whereby your records and other parties records/accounts eg. Bank/debtors/creditors and/or physical stock and system stock getting tallied and mistakes or omission are rectified through due process.
Reconciliation is a process that explains the difference between the bank balance shown in an organization's bank statement, as supplied by the bank, and the corresponding amount shown in the organization's own [accounting] records at a particular point in time.
