Final answer:
Reconciling an account involves ensuring your financial records match the actual account balances. A non-zero difference signifies discrepancies, which could be due to errors, fees, or unrecorded transactions. It requires a thorough review to find and correct any inconsistencies.
Step-by-step explanation:
When you reconcile an account and the difference is not zero, it means there are discrepancies between your records and the actual amounts either in the transactions or the current account balance. This could be due to unrecorded transactions, bank fees that weren't accounted for, errors in entry, or delays in processing certain transactions. Using the analogy of a money transfer, imagine you're transferring $1,000 from account A to account B, but there's a $20 fee. If you only note the $1,000 transfer in Account B without considering the $20 fee paid from Account A, you'll have a discrepancy of $20 in your reconciliation process between the two accounts.
It's important then to track every transaction, including fees, to ensure the books are balanced. If any difference remains, thorough investigation is needed to correct any errors or acknowledge any oversights.