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Accounting & Tax vocabulary · Bookkeeping & Ledgers

Reconcile

Meaning in accounting & tax, with examples

/ˈrekənsaɪl/verbCore term

In accounting & tax, reconcile means: To compare two sets of records, such as the ledger and a bank statement, to make sure they agree, and to find and explain any differences.

In Turkish: mutabakat yapmak, uzlaştırmak, eşleştirmek

How it is used

Accountants reconcile accounts, balances and statements every month. The noun is reconciliation, often shortened to 'rec'. Intercompany balances and supplier statements are reconciled too.

Example sentences

  1. I need to reconcile the supplier statement with our AP ledger before Friday.

  2. The intercompany balances don't reconcile; there's a difference of 8,000 euros.

Common collocations

  • reconcile accounts
  • reconcile a balance
  • reconcile the difference
  • account reconciliation
  • bank reconciliationA regular check that compares the cash balance in a company's books with the bank statement and explains every difference between them.
  • month-end closeThe set of tasks accountants complete after each month ends, such as posting accruals and reconciling accounts, so that the month's results are final.
  • general ledgerThe main set of accounts of a business, where all transactions are collected account by account to show the balance of each one.
  • accounts payableMoney a company owes to its suppliers for goods or services bought on credit, and also the team that processes and pays those supplier invoices.

More terms: Bookkeeping & Ledgers

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This page explains English vocabulary for learners. It is not financial advice.