Reconciliation

Reconciliation is the process of comparing two sets of records or a recorded balance with an independent count or statement to confirm that they agree. In a restaurant, reconciliation is used for cash, POS sales, inventory, supplier invoices, purchasing records and financial accounts.

Common restaurant reconciliation tasks

• Cash reconciliation: compare the cash drawer with POS records and recorded deposits.
• Sales reconciliation: compare POS sales reports with payment processor and bank settlement records.
• Inventory reconciliation: compare physical stock counts with the inventory system.
• Supplier reconciliation: match purchase orders, delivery records and supplier invoices.
• Bank reconciliation: compare bank transactions with the business’s accounting records.

How reconciliation works

1. Gather the records and define the period or transaction set being checked.
2. Compare balances, quantities or transactions using the same units and accounting basis.
3. Identify differences and investigate their cause.
4. Correct errors or document legitimate timing and valuation differences.
5. Record the review and obtain approval where required.

Reconciliation versus inventory counting

A physical inventory count measures what is actually on hand. Inventory reconciliation compares that count with the system’s expected balance and investigates the variance. The count is one input into the reconciliation process.

Chef’s tip: Reconcile regularly and investigate differences while supporting records are still available. Do not adjust a balance simply to make the numbers agree without understanding the reason.

Key distinction: Reconciliation verifies agreement between records or balances; it is more than performing a physical count or reviewing a sales report.