What is the purpose of "Account Reconciliation" in QuickBooks?

The purpose of "Account Reconciliation" in QuickBooks is primarily to ensure that the records in the QuickBooks accounting software match the transactions shown in bank statements. This process involves comparing the entries recorded in QuickBooks against the entries in the bank statement, allowing users to identify any discrepancies, such as unrecorded transactions or errors in entries.

Reconciliation helps maintain the integrity of financial data, ensuring that the business's financial statements accurately reflect its economic activity. This is crucial for proper financial management, as any inconsistencies might indicate fraud, oversight, or tracking issues that need to be resolved for accurate financial reporting and decision-making.