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Reconciliation reporting is the process of verifying and matching financial transactions to ensure consistency and accuracy between different sets of records. This practice is essential for identifying discrepancies, correcting errors, and ensuring the integrity of financial statements.
Account reconciliation involves reviewing and comparing your recorded transactions against external financial documents like bank statements and receipts to confirm their accuracy. The goal is to ensure that no discrepancies exist that could lead to financial mismanagement.
Reconciling monthly financial reports from the Accounting Department (such as Statements of Accounts or Ledger Sheets) to file copies of supporting documentation or departmental accounting records is an example of reconciling one set of data to another.
Definition: Reconciliation is the process of comparing transactions and activity to supporting documentation. Further, reconciliation involves resolving any discrepancies that may have been discovered.
Purpose: The process of reconciliation ensures the accuracy and validity of financial information. Also, a proper reconciliation process ensures that unauthorized changes have not occurred to transactions during processing.
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