Three Way Reconciliation Accounting Definition
In accounting, reconciliation is the process of comparing two sets of records to check for accuracy and completeness. Reconciliation is used to ensure that data is consistent between two or more sources.
Three-way reconciliation is a type of reconciliation that compares three sets of records. This approach is often used in financial accounting to reconcile balance sheet accounts with corresponding income and expense accounts.
The goal of three-way reconciliation is to ensure that the data from all three sources (balance sheet, income statement, and expense report) agrees. This type of reconciliation can be time-consuming and challenging, but it provides a more complete picture of an organization’s finances.
