RECONCILIATION
Reconciliation
Reconciliation, in the financial and business context, is the process of comparing and matching two sets of records to ensure they are consistent and accurate. Two common areas where reconciliation is crucial include financial reconciliation and payroll reconciliation.
The process of comparing different financial records to guarantee correctness and consistency is called the Financial reconciliation. Reconciling bank statements, financial statements, and other accounting data to find any discrepancies or inaccuracies in the process. In the human resources and payroll context, reconciliation is particularly important to verify that the amounts stated in financial records align with the actual payments made to employees. Payroll reconciliation specifically involves cross-checking the details of employee compensation, including salary and various deductions, with the companys financial statements.