Meaning & use

reconciliation statement

noun·Advancedbusinessfinance

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UK/ˌrekənsɪliˈeɪʃən ˌsteɪtmənt/
US/ˌrekənsɪliˈeɪʃən ˌsteɪtmənt/

Meanings

  1. nouncountablebusinessfinance

    A financial document that shows why two sets of figures that should match are different, and explains each difference.

    Grammar: Countable: say 'a reconciliation statement' or 'two reconciliation statements'.

    Patterns

    • a reconciliation statement for something
    • prepare a reconciliation statement
    • a bank reconciliation statement

    The accountant prepared a reconciliation statement to show why the bank balance and the company's records did not agree.

    Please attach a reconciliation statement for the petty cash account before the audit.

    Investors asked for a reconciliation statement explaining the gap between reported profit and cash flow.

  2. nouncountableformal

    A short written or spoken account that shows how two apparently conflicting views, reports, or sets of numbers can be made to agree.

    Grammar: Countable and often followed by 'between': a reconciliation statement between the two reports.

    Patterns

    • a reconciliation statement between two things
    • issue a reconciliation statement

    The two departments issued a joint reconciliation statement showing where their cost estimates differed.

    Her report reads like a reconciliation statement between the official figures and what staff actually observed.

Word forms

pluralreconciliation statements

Common combinations

prepare a reconciliation statement
The finance team prepares a reconciliation statement at the end of every month.
bank reconciliation statement
The bank reconciliation statement proved that the missing payment had cleared.
reconciliation statement for an account
He signed off on the reconciliation statement for the supplier account.
monthly reconciliation statement
A monthly reconciliation statement keeps small errors from growing.
reconciliation statement showing the difference
The auditors wanted a reconciliation statement showing the difference in full.

Synonyms and how they differ

reconciliation
A shorter, more general word for the process or the document; use it in speech, and the full phrase in formal reports.
statement of account
This lists transactions and balances but does not necessarily explain why two figures disagree, which is the point of a reconciliation statement.
breakdown
A breakdown lists the parts of one total; a reconciliation statement compares two totals and explains the gap between them.

Word family

reconcile verb
to make two sets of figures or two accounts agree
reconciliation noun
the act or result of making figures, accounts, or views agree
reconcilable adjective
able to be made to agree
reconciler noun
a person or tool that makes accounts agree

Commonly confused: reconciliation statement or reconciliation? reconciliation statement or balance sheet?

reconciliation statement vs reconciliation

The short noun names the process or result; the full phrase 'reconciliation statement' names the actual document you hand to someone.

reconciliation statement vs balance sheet

A balance sheet shows assets, liabilities, and equity at one date; a reconciliation statement explains why two sets of numbers differ.

Practice

The auditors asked the company to ______ explaining the difference between its reported profit and its cash balance.

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