What does reconcile mean in accounting Meaning and Definition
What does reconcile mean in accounting
Pronunciation
(/ri-kɑnˈsail,)
Part of Speech
Noun
Definition
In accounting, reconciliation is the process of verifying and explaining the difference between two sets of records, typically an organization’s internal records and an external source, such as a bank statement or credit card statement.
Etymology
The word “reconcile” comes from the Latin reconciliare, meaning “to restore friendship” or “to make peace”. In the context of accounting, reconciliation aims to “make peace” between different sets of records by identifying and resolving any discrepancies.
Usage Notes
When using the term “reconcile” in accounting, it is essential to specify the type of reconciliation being performed, such as bank reconciliation or credit card reconciliation.
Cultural References
The concept of reconciliation is often associated with financial planning and budgeting, appearing in various business and financial documentaries, books, and articles.
Idiomatic Expressions or Phrases
- Make peace between accounts
- Verify financial records
Related Words or Phrases
- Verification
- Authentication
- Record-keeping
Collocations
- Reconcile financial statements
- Reconcile bank accounts
- Reconcile discrepancies
Frequency of Use
The term “reconcile” is commonly used in accounting and finance contexts, particularly when dealing with discrepancies or errors in financial records.
Common Misspellings
- Rekinile
- Reconsile
- Reconcyl