Balance Sheet Reconciliations refer to the process of ensuring that two sets of financial records are in agreement. This process is done by accounting professionals to ensure that data such as assets, liabilities and equity accurately reflect what is reported in an organization. The reconciliation process checks for any discrepancies between these two sets of records, often by means of manual or automated audit procedures. By properly reconciling and resolving any differences, organizations can ensure their data is accurate, and their financial reporting is reliable and valid. In other words, a balance sheet reconciliation ensures that bookkeeping is both efficient and effective.