What is transaction matching?

Transaction matching is the process of linking related financial records, such as payments, invoices, bank transactions, or bills, to confirm they represent the same business activity. Matching transactions helps improve reconciliation accuracy and maintain reliable financial records.

Example: An accounting system automatically matches a vendor payment to the original bill, confirming the invoice has been paid and updating the ledger accordingly.

Related terms: Reconciliation, Accounts Payable, Accounts Receivable, System of Record, General Ledger