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reconcile

REK-uhn-syl /ˈrɛkənˌsaɪl/

verbB2GRETOEFLIELTS

formalgeneral

To make (one account) consistent with another, especially by allowing for transactions that have not yet been recorded.

In finance, 'reconcile' means to compare two sets of records (e.g., a bank statement and a company's cash ledger) to ensure they match and to identify any differences. It's about bringing disparate figures into agreement.

The story behind the word. The word 'reconcile' comes from the Latin 'reconciliare,' meaning 'to bring together again, to restore, to reunite.' This perfectly captures its financial meaning: bringing two sets of accounts or figures back into agreement after they've seemingly diverged. It's about restoring harmony to the numbers!

Word relationships

harmonize: To bring into agreement, often implying a more general sense of fitting together.
balance: To make equal or proportionate, often used in the context of balancing a checkbook or ledger.
adjust: To change something slightly to make it more accurate or effective; reconciliation often involves making adjustments.

disagree: To be inconsistent or at odds.
clash: To be in conflict or opposition.

Commonly confused with

balance: While 'balance' can be part of reconciliation (e.g., balancing a checkbook), 'reconcile' specifically means comparing two separate records to find and explain differences, leading to a balance.

Word family

reconciliation (noun): The act of reconciling; the process of making two accounts consistent.

Collocations

reconcile accounts
reconcile bank statements
reconcile differences
reconcile data

Example sentences

"Every month, the bookkeeper must reconcile the company's bank statement with its internal cash records to catch any errors or missing transactions." Reconciling bank statements.
"It was challenging to reconcile the sales figures from the online platform with those from the physical store, as they used different reporting systems." Reconciling different reports.
"After the initial shock, she had to reconcile her ambitious project timeline with the limited resources available." Reconciling expectations with reality.

Memory hook

To RECONCILE is to make two accounts CONCILIATORY (agreeable) with each other. Make consistent

When not to use

While 'reconcile' can mean to restore friendly relations, in a financial context, it specifically refers to matching accounts, not resolving personal disputes.

Fun facts

The concept of reconciliation is not limited to finance; it can also refer to resolving conflicts between people or ideas.
Bank reconciliation is a critical internal control process for businesses to detect errors, fraud, or unrecorded transactions.