What Is Reconciliation?
The process of comparing two sets of records to ensure they agree and are accurate.
Detailed Explanation
In invoicing, reconciliation involves matching invoices to payments, purchase orders, or bank statements. Discrepancies must be investigated and resolved before closing the books.
Example
Month-end reconciliation reveals a $500 payment applied to the wrong client invoice.
Why It Matters
Prevents financial misstatements and catches errors before they compound.
Related Resources
Related Accounting Basics Terms
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