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.