Finance term
Reconciliation
Matching records against each other
Definition
The process of matching transactions in an accounting ledger against an independent record, most often a bank statement, to confirm both are complete and accurate.
In more detail
Reconciliation is a control, not a formality. It is what surfaces duplicated charges, missing income, and fees that were never recorded.
Automated bank feeds reduce the manual work but do not remove the review step: matching rules can mis-assign transactions silently.
Glossary entries are general explanations, not advice. Where a term appears in a contract or policy, the definition in that document governs.