What is billing reconciliation?

Billing reconciliation involves the process of matching billing records, such as invoices and statements, with the actual services provided and the payments received. This process ensures accuracy in financial documents and helps to identify discrepancies between what was billed and what has been paid. When discrepancies are identified, further investigation can take place to resolve any potential issues, such as unprocessed claims or billing errors. The goal of billing reconciliation is to maintain clear and accurate financial records within an organization, which is crucial for both operational efficiency and compliance with accounting standards.

The other options, while related to billing practices, do not capture the specific purpose of reconciliation. Adjusting patient accounts may refer to correcting account balances, creating financial forecasts is more related to predicting future revenues, and reviewing insurance claims is focused on ensuring claims are processed correctly rather than on the reconciliation of billing records.