Definition: The foundational accounting and operational process of comparing two or more sets of records to ensure they agree. It is the primary control mechanism used by financial institutions to verify data integrity, identify errors or omissions, and ensure that internal books accurately reflect the reality of external bank or custodian statements.
Example: An example of this process is a bank reconciliation, which compares a fund’s internal cash records or general ledger to bank statements to verify the figures align.
Explore IVP Shadow Accounting Services
IVP Shadow Accounting Services support a range of reconciliation processes, including cash, position, and transaction reconciliations, helping buy-side firms identify discrepancies and maintain accurate accounting records. The service enables hedge funds and asset managers to outsource full or partial accounting functions, improving operational efficiency and scalability while supporting a variety of fund structures and accounting platforms.
