Account Reconciliation

Business, Legal & Accounting Glossary

Definition: Account Reconciliation


Quick Summary of Account Reconciliation


The reviewing and adjusting of the balance in a personal chequebook to match your bank statement.



What is the dictionary definition of Account Reconciliation?

Dictionary Definition


Reconciliation is the process of comparing and matching general ledger entrys for two sets of corresponding records. It is an important accounting process which translates into accurate financial reporting and government filings.


Full Definition of Account Reconciliation


Account reconciliation is a banking term referring to the process of confirming that the balance in one’s checkbook matches the balance on the bank statement itself. Account reconciliation may reveal that the amounts don’t correspond, which will require the account holder to perform subsequent adjustments. The importance of account reconciliation is that it helps the account holder keep track of the money, which could prevent expensive inefficient funds fees. There are several steps and precautions one can take when engaging in account reconciliation. Account reconciliation might entail keeping good records and carefully inspecting the bank statement itself. Account reconciliation can be used by both individuals and companies. In the business sense, account reconciliation is a method that can be used to help with cash management and help protect the business against fraudulent activities (such as the posting of unauthorized checks).


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Modern Language Association (MLA):
Account Reconciliation. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. December 02, 2020 https://payrollheaven.com/define/account-reconciliation/.
Chicago Manual of Style (CMS):
Account Reconciliation. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/account-reconciliation/ (accessed: December 02, 2020).
American Psychological Association (APA):
Account Reconciliation. PayrollHeaven.com. Retrieved December 02, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/account-reconciliation/

Definition Sources


Definitions for Account Reconciliation are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 0 Views.