Reconciliation

Reconciliation refers to the process of comparing and aligning financial records to ensure consistency and accuracy between different stages of the payment lifecycle. This process involves matching transaction data from various sources, such as payment processors, banks, and merchant records, to verify that all transactions are accounted for and accurately reflected in financial statements.

Reconciliation aims to identify and rectify discrepancies, errors, or missing information, providing a comprehensive and accurate representation of financial transactions. Common reconciliation activities include comparing transaction amounts, verifying settlement details, and addressing any discrepancies between issued invoices and received payments.

Efficient reconciliation practices contribute to financial transparency, compliance with accounting standards, and the prevention of financial discrepancies or errors that may impact the integrity of financial reporting in businesses and financial institutions.