Definition, Meaning & Synonyms
book-to-tax-reconciliation
noun
/bʊk tə tæk ˌriː.kənˌsɪl.iˈeɪ.ʃən/
Definition
The process of ensuring that a company’s financial statements align with its tax records, identifying any differences that may need correction.
Examples
- The finance team conducted a thorough book-to-tax reconciliation at the end of the fiscal year.
- To avoid penalties, businesses must regularly perform book-to-tax reconciliations.
- Book-to-tax reconciliation can uncover discrepancies that might affect overall financial performance.
Meaning
Book-to-tax reconciliation helps businesses reconcile the amounts reported on their financial statements with the amounts reported to tax authorities, ensuring accuracy in both areas.
Synonyms
- financial reconciliation
- tax reconciliation
- accounting reconciliation
