Reconciliations

Reconciliation is the process of verifying that the 'real' state of a physical account is exactly represented on the accounting system.

It is common to reconcile the following types of account:

• bank

• credit card

• payment processor

It is possible in Pakk, however, to reconcile any Account on the system.

During a Reconciliation it is common to find small errors in the accounting system, either transactions that appear on the physical account statement that haven't been recorded on the accounting system or have been recorded incorrectly (e.g. wrong date, wrong amount), or transactions that have been incorrectly placed on the system and never really happened.

Once a Reconciliation is complete, you can be 100% sure that the system state reflects reality accurately. More importantly, once transactions are 'reconciled' they cannot be changed or removed, so you can be sure that no-one can inadvertently 'change reality' further down the line.