The reconciliation hub
Two records. One truth.
Plain answers on how reconciliation actually works: two-way and three-way, deterministic matching, what causes discrepancies, how often to run it, and build vs buy vs done-for-you.
How two-sided reconciliation worksTwo-sided reconciliation matches two independent records of the same money, what one party reported against what actually arrived or was owed, and surfaces every difference. It is how you catch payments that were short, missing, or overcharged before they get written off.Read itWhy deterministic matching beats AI guessingReconciliation is a determinism problem, not a prediction problem. The match between two financial records has one correct answer, and it has to be provable to the dollar. Deterministic rules deliver that; a language model that guesses probable matches does not, and in money math a probable answer is a wrong answer.Read itReconciliation: build, buy, or done-for-youThere are three ways to get reconciliation done: build it in-house, buy reconciliation software, or hand it to a done-for-you service. The right choice comes down to volume, engineering capacity, and whether you want a tool or an outcome.Read itWhat is three-way reconciliation?Three-way reconciliation matches three independent records of the same money instead of two, so all three must tie out to the same number. It is used where agreement between two records is not enough to prove the money is correct, most often in client-trust accounting and in purchasing (order, receipt, and invoice).Read itTwo-way vs three-way reconciliation: what is the difference?Two-way reconciliation matches two records of the same money; three-way matches three. Two-way asks whether two records agree. Three-way asks whether all three agree and the money is properly controlled. Most business reconciliation is two-way; three-way shows up in trust accounting and purchasing.Read itWhat is payment reconciliation?Payment reconciliation is matching the payments a processor or bank says it moved against your own record of what you were owed. It confirms every charge, payout, fee, and refund actually landed correctly, and surfaces the ones that were short, missing, or wrong.Read itWhat is account reconciliation?Account reconciliation is confirming that your record of an account agrees with an independent source, and explaining any difference. It is the umbrella term: bank, payment, and balance-sheet reconciliations are all specific kinds. The goal is a balance you can prove, not just one that looks right.Read itHow often should you reconcile?Reconcile as often as new activity lands, so differences are caught while they are still fixable and never pile up. For most operators that means monthly at minimum; high-volume or high-risk accounts are better reconciled weekly or per payout cycle.Read itWhat causes reconciliation discrepancies?Discrepancies come from a handful of recurring sources: timing differences, fees and adjustments, errors and duplicates, missing transactions, and outright underpayments. Some are benign timing that clears itself; others are real money to recover. Reconciliation exists to tell them apart.Read itHow do you reconcile accounts, step by step?Reconciling an account means gathering the two records, matching them line by line on stable keys, classifying every difference, documenting the ones that are real, and clearing the ones that are just timing. The output is a balance you can prove, with every difference explained or flagged for recovery.Read it