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 It is important to reconcile the balance sheet accounts to bank statements for a couple of reasons.
The primary reason is to be assured that your balances reported are accurate. Reconciling ensures that all the transactions have been recorded and none are missing. This is especially true when automatically downloading transactions into your accounting software. Occasionally a transaction will not get downloaded thus causing incorrect balances on the accounting system and your financial statements.
The next reason is in preparation for an audit or disclosure of your balance sheet to interested parties. An auditor will compare the bank statements to the balances provided on your financial reports. If the reconciliations do not agree, your financial statements will not be in compliance.
The last item I want to mention is that you should reconcile not only your bank accounts but also credit card accounts.
In QuickBooks you can reconcile all balance sheet accounts. It comes in handy for easy customer deposit reports.
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