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Financial Reconciliation

Financial reconciliation, or account reconciliation, is the process of comparing two or more business records to confirm the information they contain matches. This ensures accuracy across the business, reduces revenue leakage, supports compliance processes and equips decision-makers with the most reliable data possible. 

Financial reconciliation can be a yearly, quarterly, or monthly activity for a finance team as well as an ongoing process for functions like 2-way and 3-way matching.

Related terms

30-Day and 13-Week Operating Cash Burn
30-day and 13-week operating cash burn are also known as the “burn rate.” These are the rates at which a business consumes its cash reserves when it isn’t bringing in profit. 
Accounts Payable Days
Accounts Payable Days (AP Days), also referred to as Days Payable Outstanding (DPO), is a financial ratio that measures the average time a company takes to pay its suppliers or vendors for credit purchases.
Accounts Payable Turnover
Accounts payable turnover explains how many times a business pays its creditors in a set timespan. Companies can use this metric to measure their short-term liquidity.
Accounts Receivable Turnover
The accounts receivable turnover ratio (or debtor turnover ratio) allows businesses to evaluate their debt collection efficiency.
Advanced Reporting
Advanced reporting refers to a sophisticated approach to generating and analyzing reports using advanced tools, techniques, and technologies.
Annual Recurring Revenue (ARR)
Annual Recurring Revenue (ARR) is a key metric used by subscription-based businesses to track and measure their predictable, recurring revenue streams over a one-year period.