Part 7: Reconciliation
Ensuring Accuracy in Financial Records
Purpose:
Reconciliation involves matching two sets of records, often the balances of two accounts, to ensure they are in agreement.
Importance:
Regular reconciliation helps in maintaining the accuracy of financial records, identifying discrepancies, preventing fraud, and ensuring the integrity of financial statements.
Example:
Comparing the bank statement with the company's Cash account records each month to identify any discrepancies or unusual transactions.
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