Glossary · Reading the business
In short
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.
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.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
Free · No documents · Usually same-day