Reconciliation
Also known as: balance reconciliation, reconciling
Checking that your recorded holdings and transactions match actual on-chain and exchange balances, so tax figures are complete and accurate.
Definition
Reconciliation is confirming that your transaction records add up to your real balances across every wallet and exchange. Gaps — missing imports, mislabelled transfers, or untracked fees — produce wrong base costs and phantom gains or losses. Good reconciliation ensures every disposal has a matching acquisition and that ending balances tie out, which is essential for a defensible ITR12 position.
Example
Your tool shows 1.2 BTC but your wallets hold 1.0 BTC. Reconciliation finds a duplicated import, fixing the base cost before you file.
Jurisdiction notes
- South Africa: Reconciled records support an accurate ITR12 and reduce the risk of SARS queries or understatement penalties.