Reconciliation is the accounting equivalent of a health check. The most common types in UAE businesses: bank reconciliation (books vs bank), VAT reconciliation (VAT return figures vs general ledger), and intercompany reconciliation (transactions between related entities that must net to zero). Regular reconciliation catches errors before they compound, makes audits faster, and is a basic requirement for FTA compliance. The FTA's audit approach typically begins by reconciling VAT returns to financial statements — discrepancies trigger further inquiry.
See also: Bank Reconciliation, Audit Trail, VAT Return
