Confirms the outstanding balance between two parties as per books of accounts on a specific date

Used to verify accuracy of ledger records and identify discrepancies

Helps detect errors, omissions, or unauthorized transactions

Acts as supporting evidence during audits and financial reviews

Ensures both parties agree on receivables or payables

Improves transparency and trust in financial reporting

Typically includes opening balance, transactions during the period, and closing balance

Requires confirmation, signature, and stamp from the counterparty