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If you use QuickBooks software to keep an eye on your business expenses and income, then learning how to reconcile in QuickBooks online is a must for you. You need to reconcile your QuickBooks account frequently for an apt understanding of your Account. For the successful Reconciliation of your transactions against the bank statement, the difference between the cleared balance and the ending balance must be zero. If this is not the condition, then you have to verify the issue and troubleshoot it.
Now let’s understand the process of reconciling in QuickBooks Online.
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Why is Bank Reconciliation in QuickBooks important?
With the help of reconciling Bank accounts in QuickBooks, you will get the correct list of all the transactions from your bank account. In addition to that, you can even get the difference between both accounts to get apt results.
There are various other advantages of reconciling of QuickBooks, which are mentioned below:
- By reconciling your Bank Account in QuickBooks, you get the surety that all your Transaction history is present in QuickBooks.
- Bank Reconciling also ensures that the transaction history is available on both QuickBooks and the Bank Statement.
- At times, a transaction gets listed in QuickBooks by mistake. So that transaction entry can be identified easily if the bank account is mentioned.
How to reconcile in QuickBooks online?
If you are someone, who is looking for ample instruction to reconcile bank accounts in QuickBooks online, then you are on the right post. Follow the below-mentioned steps for the perfect results:
Step 1: Check your Opening Balance
Before going further with the process, you have to check the opening balance. This balance is entered by you in your QuickBooks books of Account. Verify and review that your bank account balance is the same as the opening balance of your Account.
After doing this, you can go forward to the next step.
Step 2: Initiate the process of Reconciliation
Once you are done with matching the QuickBooks balance and Bank balance, begin the process of reconciling. To do so, follow the given steps:
- You have to tally and categorize all the downloaded transaction history if your accounts are connected to Online banking.
- Now, Open Settings and hit on the Reconcile option. If you are reconciling for the first time, Hit the Get Started option.
- Then, Hit the Account drop-down, and from the list, select the Account you want to reconcile.
Note: The selected Account must be the same as that is on your bank statement.
- Now verify the beginning balance; it should be the same as the one in the bank statement.
- Now, provide the Ending balance along with the Ending Date on your statement.
Note: Various Financial Institutes call the ending balance as “New Balance” or “ Closing Balance”
- Now, verify the Last statement ending date, then select the Start Reconciling tab.
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Step 3: Make a comparison between your Statement and QuickBooks
At this point, you have to simply do a comparison between the transactions available on your statements and the ones in QuickBooks. Check each of them one after the another.
Note: The dates and transactions you have added in QuickBooks need to be correct for the proper verification of accounts.
Reconcile the Accounts linked with Online Banking
Follow the given instructions step-by-step to reconcile the accounts linked with Online Banking.
- Initiate the reconciling process with the first transaction available on your statement.
- Then search the same transaction in the Reconciliation section of QuickBooks.
- Thereafter, compare both transactions. However, if there is a checkmark next to the amount in QuickBooks, it shows as reconciled.
- If the statement is visible in QuickBooks but you if can’t find the transaction on your statement, then don’t check-mark the box.
- Now match all the transactions present on your statement with the ones in QuickBooks.
Note: Suppose you find the match but with a little variation. Then click on the Transaction in QuickBooks to expand, and hit on the Edit option. Now make the changes to match it with the bank statement.
- Finally, in the end, the difference between the bank statement and QuickBooks should be $0.00. If it is so, click on the Finish option to end the process.
Step 4: Check the previous Reconciliations
Here you have to go through a reconciliation report to check your work.
Follow the given steps to do so:
- To begin the process, move to Accounting or Bookkeeping and then click on the Reconcile tab.
- Then, click on the history by Account option.
- Now, use the drop-down menu to decide the Account and date range.
Step 5: Print the Reconciled Transactions
As soon as you end the reconciliation, QBs online makes a reconciliation report for that session. Then you can get the report exported or printed if asked by the person.
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By following this blog, a user can simply reconcile in QuickBooks Online and find if there is any difference between your bank account and that in QuickBooks. However, if you still encounter any issues at the time of reconciling your Account, then you can take assistance from our professional experts. Get in touch via email or live chat and ask all your Queries.