Reconciliation

Reconciliation is an accounting task that compares two records to ensure they match. Any mismatch must be tracked down, as it could mean there was an accounting mistake or potential fraud. For example, comparing receipts against credit card statements is a type of reconciliation. Credit card receipt amounts should match statement amounts. Also, the number of receipts should match the number of credit card transactions on the statement. While manual reconciliation is an option, using accounting software can reduce the work required. Reconciliation is used by individuals with their personal finances and by companies of all sizes.

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