Wednesday, November 20, 2024

What is reconciliation in accounting?

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Reconciliation, in a financial context, is the process of comparing two sets of records to ensure their accuracy and consistency. Typically, it involves matching internal financial records, such as receipts, invoices, or transaction logs, with external statements, such as bank statements or vendor accounts. The goal is to identify discrepancies, rectify errors, and confirm that every transaction is accounted for.

In simpler terms, reconciliation acts as a financial "checkpoint," verifying that what a business believes it spent or received aligns with what actually occurred.

How Receipt-AI Makes Reconciliation Easy

Receipt-AI recently launched One-Click Reconciliation. Here’s how it works:

1. Upload your receipt.

2. The receipt is automatically categorized, uploaded to QuickBooks or Xero, and matched to a transaction.

3. Review and click 'Match' in your QuickBooks, or 'OK' in your Xero.

Designed with user experience in mind, it automatically categorizes transactions based on your chart of accounts, saving you time and eliminating manual effort. With One-Click Reconciliation, managing your finances has never been easier, faster, or more accurate.