Explore commonly used personal finance terms.
An account reconciliation statement is a financial document used to verify that two sets of records (e.g., bank statements and personal records) match, identifying discrepancies or errors. Typically prepared monthly, this statement helps ensure that transactions are accurately recorded, preventing errors or fraudulent activity. Reconciliation statements are commonly used in businesses to verify cash balances, expenses, and income, supporting financial accuracy and control, which are essential for effective accounting and budgeting practices.
