A/R reconciliation

Accounts receivable (A/R) reconciliation is the process of ensuring that the company's records of money owed by customers match the actual payments received and the balances shown in accounting systems. It involves comparing invoices, payments, and account statements to identify and resolve discrepancies. This helps confirm that all customer debts are accurately recorded, prevent errors, and ensure the company’s financial reports are correct. Regular reconciliation maintains the integrity of financial data and supports effective cash flow management.