Accounting

    Reconciliation

    Matching your books against your bank statement to confirm every transaction.

    Definition

    Reconcile monthly to catch missed deposits, double charges, and unauthorized transactions. Trades that go 6+ months between reconciliations almost always find errors.

    Related terms

    Cash flow

    The net movement of cash into and out of a business over a period.

    Audit trail

    A complete chronological record of every change made to a financial document.