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).

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Account Reconciliation. Payroll & Accounting Heaven Ltd. October 25, 2021
Chicago Manual of Style (CMS):
Account Reconciliation. Payroll & Accounting Heaven Ltd. (accessed: October 25, 2021).
American Psychological Association (APA):
Account Reconciliation. Retrieved October 25, 2021, from website:

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 | 1 Views.