Reconciliation
In accounting, reconciliation means comparing our record to an external party's.
- Layer
- Lexicon
- Defined in
- Lexicon
- Components
- 5
Authority
This definition follows Internal control — SOX §404.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
The lesson that teaches this
Accounting, 0 to 1 — a free course taught end to end on one month of one company, with the spreadsheet exercises to work it yourself.
Reconciliation, in use
Quoted from the 13 documents that use the word — what it does to an interface, in the spec's own sentence.
If shown, it appears below net income in a clearly separated reconciliation block — see metrics.
The reconciliation match (ReconciliationView) — two rows fly together and merge.
Suggested matches with confidence, one-click accept, manual multi-select match (many-to-one and one-to-many both supported — real reconciliation is rarely 1:1).
For founders
The same idea written for a founder: what it costs a startup that ignores it, and what to do in a real month.
- ReconciliationMatching each line in your books to an outside record, like the bank, Stripe or payroll, until nothing is left over.
- Form 1099-KThe information return a card processor, payment app or online marketplace files to report the gross payments it settled to you in a year. Card payments are reported at any amount; payment apps and marketplaces report only above $20,000 and 200 transactions.
- Bank reconciliation step by stepMatch the bank statement to the books, clear deposits in transit and outstanding checks, book the fees, and reach a $0.00 difference every month.
- Cash flow statement explained: why profit isn’t cashHow the cash flow statement starts at net income, adds back non-cash costs and working capital, splits three activities and ties to the balance sheet.
- Cash vs accrual accounting for startups, and the IRS ruleCash or accrual for a startup: why investors and auditors read accrual, when the IRS lets a C-corp file on cash, and the 2026 gross receipts limit.
What it is not called
Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.
- matching alone
Components that render this
The concept is not documentation-only. These are the components that name it in their specification, grouped and stated exactly as the catalog states them.
1Primitives
Family spec5Ledger & tables
Family spec6Statements
Family spec10Receivables (AR)
Family spec13Metrics & analysis
Family specAlso in Close
Work with this concept
The calculators that compute it and the ledger payloads that carry it. A definition is where a reader starts; these are where they go next.
- Difference diagnoserOut by 8,100? That is divisible by 9 — a transposition. This says which error fits the gap.Tool
- Two-list matcherBank against ledger: exact, then reference, then a date window, then one-to-many — and what is left on both sides.Tool
- Journal entry for a Stripe payoutBook charges gross: debit Stripe clearing and credit Revenue for every charge, debit Sales returns and allowances and credit Stripe clearing for refunds. When the payout lands, debit Cash for the payout and Merchant fees for the fees, and credit Stripe clearing — which should then be zero.Entry
- Journal entry for credit card expensesFor each company card charge, debit the expense it paid for and credit Credit card payable. When the statement is paid, debit Credit card payable and credit Cash.Entry
Defined in Lexicon. This page is generated from that document, so the two cannot disagree.