Financial reconciliation is the process of comparing two sets of financial records to ensure that all numbers match and agree. It is an essential aspect of corporate finance as it provides important information to both management and stakeholders. The process involves matching up bank statements, sales receipts, invoices and other financial documents to check for accuracy and completeness. Financial reconciliation helps companies detect discrepancies in their finances, prevent fraud, and remain compliant with various regulations. In short, it is a vital process for safeguarding a business’ finances.