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Accounting reconciliations

The need for accounting reconciliations

Reconciliations are needed to:

 provide a check on the accuracy of entries made in the ledgers

 reduce the risk of fraud or error in the accounting records.

An accounting reconciliation is a comparison of records to identify differences and to
effect agreement. Common reconciliations of this type are:

 bank reconciliations

 petty cash reconciliations

 supplier and customer reconciliations

 control account reconciliations.

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