Reconciliation of Accounts Receivable is the process of confirming that amounts billed to customers are accurate and have been received by the customer. This process typically involves a comparison of invoices sent to customers against what has actually been paid. By regularly reconciling accounts receivable, businesses can ensure that their records are up-to-date and that any discrepancies can be quickly identified and rectified. Through this process, businesses can also identify potential risks or losses due to late payments from customers or outright fraud. A successful reconciliation of accounts receivable helps businesses stay on top of their finances and ensure they maintain adequate cash flow.