{"ok":true,"canonical_url":"https://dealroom.so/glossary/reconciliation","api_url":"https://dealroom.so/api/public/glossary/reconciliation","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"reconciliation","term":"Reconciliation","group":"Reading the business","definition":"Reconciliation is the process of comparing different financial records to ensure they match and are accurate. You'll use this to verify the seller's reported numbers against bank statements and tax returns.","what_it_means":"When reviewing a business's financials, you must reconcile the Profit and Loss Statement and Balance Sheet figures with bank statements, credit card processing reports, and IRS transcripts. Discrepancies can indicate poor bookkeeping, fraud, or intentional misrepresentation of earnings. Demand access to all necessary records to perform thorough reconciliations.","url":"https://dealroom.so/glossary/reconciliation","official_sources":[],"related":[{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"irs-transcripts","term":"IRS transcripts (4506-T)","url":"https://dealroom.so/glossary/irs-transcripts"},{"slug":"audit-trail","term":"Audit trail","url":"https://dealroom.so/glossary/audit-trail"}],"related_questions":[]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Reconciliation","url":"https://dealroom.so/glossary/reconciliation","source_type":"DealRoom Data"}}