What is Transaction Reconciliation?
Transaction Reconciliation is a process performed by accountants to match financial records, such as bank statements or payment processor records, with a company’s internal records.
It makes sure that all transactions are accurately recorded and accounted for, detecting and resolving any discrepancies between the two. This is crucial for ensuring financial accuracy, compliance, and preventing fraud.
Types of Transaction Reconciliation
Bank Reconciliation: To match bank statements with internal cash records.
Credit Card Reconciliation: To match credit card transactions with sales data.
Payment Reconciliation: To Align customer payments with invoices or orders.
