Finance & Moneyintermediate
Reconciliation
Definition
The routine check of matching your own records of money in and out against your bank statements to make sure everything agrees.
Why it matters
Reconciliation catches errors, missed payments and fraud early, and it keeps your books accurate so your tax return and decisions are trustworthy.
Example
At month end you compare your sales records with your bank account and spot a £50 supplier charge you had forgotten to log.
Related terms
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