Account reconciliation is the process of comparing two sets of records to make sure the balances match.

It helps to:

Detect errors

Find missing entries

Prevent fraud

Ensure accuracy of accounts

A common example is bank reconciliation, where:

The bank statement balance is compared with the cash book balance

Differences (like cheques issued but not cleared) are identified and adjusted

In simple terms, account reconciliation means checking and matching records to ensure financial information is correct.