Mike Andes explains why bookkeeping reconciliation matters: matching every QuickBooks transaction to your bank statement. Without it, your financial statements are garbage. He shows a company whose cash plummeted from $112,000 to under $10,000, making the whole balance sheet unreliable.
Reconciling your books means you take everything that is inside of QuickBooks that every single week or every day you're processing and categorizing. But then you got to make sure it matches with your bank account. You look at your bank statements and you match everything up. And that's why you pay a bookkeeper or an accountant or someone to do that. So that way you don't have to give me 10 disclaimers as to why things should not be the way that they look on your balance sheet and your profit and loss statement. Because if I don't have clear balance sheet and I don't have clear P&L, I can't help you because I can't be like, okay, the $112, kinda like wipe out $100. Okay. So we went from $112,000 to less than $10,000 in the bank. Okay, so the rest of this balance sheet is basically worthless.
