Replying to @ciao Reconciliation naman po next pleaaaase Explaining RECONCILIATION like you're five

Okay. Imagine may alkansya ka. Sabi sa notebook mo, dapat may 1,000 pesos ka sa alkansya. Pero nung binuksan mo na at binilang mo, 900 lang pala. So anong gagawin mo? Hindi mo naman pwedeng sabihin na, ah okay, 1,000 na lang kasi yun yung nasa notebook. You have to figure it out. Nasaan yung 100 pesos? And that in a very simple way is what we do in bank reconciliation. In QuickBooks or any accounting software, we have transactions recorded in the books. Then we have the bank statement, which is basically the bank's own record of what actually went in and out of the account. During the reconciliation, we compare the two. QuickBooks says this, bank says this. Do they match? If they match, great, reconciled, no problem. If they don't, then we investigate. Maybe may duplicate transaction, maybe may transaction na hindi na-record, maybe mali yung amount, maybe may bank fee na nasa statement pero wala pa sa QuickBooks, or maybe may transaction na na-record sa wrong account. And this is also why as a bookkeeper or accountant, we ask our clients for their bank statements. Some clients will say, but my bank is already connected to QuickBooks. Why do you still need the statements? Or sometimes they're hesitant because of privacy. So how do you explain it? You can simply tell them, we use your bank statements to verify that the transactions and ending balance recorded in QuickBooks match the bank's official records. But of course you don't tell them this inner thoughts to them. It's a control document. Because remember, bank feed is not the same as bank reconciliation. Just because transactions are coming in into QuickBooks automatically, doesn't automatically mean that your books are also correct. So explain reconciliation like you're five. May listahan ka ng pera mo, may listahan din ang bank. Kinumpara mo sila dalawa para siguraduhin na pareho ang sagot. And if they don't match, that's when you, the bookkeeper, gets to play detective. And that is reconciliation.