Reconciliation is the process of restoring friendly relations after a conflict or disagreement. It often involves open communication, understanding different perspectives, and finding common ground. This can occur in personal relationships, communities, or even between nations, aiming to heal divisions and foster cooperation. In financial contexts, reconciliation refers to comparing two sets of records to ensure they match. For example, a business might reconcile its bank statements with its accounting records to identify discrepancies. This practice helps maintain accurate financial information and supports effective decision-making within organizations.