Reconciliation is an accounting procedure that compares two sets of records to check that the figures are correct and in agreement. Reconciliation also confirms that accounts in ageneral ledgerare consistent and complete. Reconciliation can be used for personal as well as business purposes.

Account reconciliationis particularly useful for explaining any differences between two financial records or account balances. Some differences may be acceptable because of the timing of payments and deposits. Unexplained or mysterious discrepancies, however, may warn offraudorcooking the books. Businesses and individuals may reconcile their records daily, monthly, quarterly, or annually.

 What is the purpose of bank reconciliation in accounting?