Reconciliation is an accounting process that compares two sets of records to ensure that the figures are correct and in agreement. It is a general practice for businesses to create their balance sheet at the end of the financial year as it denotes the state of finances for that year). Reconciliation is not only important for businesses but may also be convenient for households and individuals). The following are some key points about reconciliation:

• Purpose: Reconciliation is used to prevent balance sheet errors on financial accounts, check for fraud, and make sure that transactions were appropriately booked to the general ledger.

• Types: There are different types of reconciliation, including bank reconciliation, vendor reconciliation, and intercompany reconciliation.

• Process: Reconciliation involves comparing two sets of records to ensure that they are consistent and complete. This can be done by comparing debit card receipts or check copies with a persons bank statements).

Performing reconciliations regularly is a good habit as it ensures that business and financial information is up to date and accurate. Reconciliation is an important process that helps instill financial integrity and allows the finance department to publish financial reports with confidence).