How to Reconcile in QuickBooks Online?

by Linda Martin QuickBooks ProAdvisor

QuickBooks is one of the best accounting companions available in the market, thanks to its accessibility and features. It is, in fact, a one-stop solution for all the accounting needs. Nowadays, both small and large-scale businesses have started opting for QuickBooks to manage their accounts. QuickBooks online bank reconciliation is one of such useful features where you can verify the bank financial transactions you have entered. First, you must ensure that you have connected your bank account to QuickBooks. What more, you can also print transaction history in the form of a report.

What is Reconciling Transactions?

Reconciliation is basically matching the bank transactions you have entered in QuickBooks with the credit card company or bank transactions. This has to be done on a regular basis so that nothing is left out.

Features of Reconciliation process

Here are a few characteristics of reconciliation of transactions in QuickBooks:

All the transaction like payments, deposits, bank fees, etc. are maintained in QuickBooks.
Ending balance and starting balance of each transaction are displayed.
You can also filter out transactions based on date, closing balance, etc.

Prerequisites

In order to reconcile transactions, there are a few things that have to be done to ensure things go on smoothly. They are:

Each and every transaction, including bank charges and other minor expenses, are to be entered accurately.
Your ending balance in QuickBooks should match with that in your bank passbook.

How to reconcile in QuickBooks online?

Here, you will get two screens while reconciling transactions.

Screen 1: Begin Reconciliation Window

Here, you select which account to reconcile and review that information entered is correct and accurate. Before proceeding to the next step, make sure that the information is correct. Now beginning to reconcile, navigate to Banking and click on Reconcile. Here, you will have many fields like Account, Statement Date, Beginning Balance, Ending Balance, etc., where you will have to enter details.

Step 1: In the Accounts tab, select your credit card or bank account you wish to reconcile.

Step 2: This automatically fills in the Statement Date. Usually, it is about 30 or 31 days after the previous reconciliation date. This can be manipulated.

Step 3: The Beginning Balance is also automatically filled in. It is also the sum of the previous entries.

Step 4: In the Ending Balance field, enter the corresponding amount from your bank statement.

Step 5: Also enter the Service Charges and Interest Earned – ensuring every minor detail is entered so that nothing is missed. Make sure you don’t enter previously entered details.

Step 6: Click on Locate Discrepancies to track any QuickBooks reconciliation discrepancy and other related issues. There will also be an option to Undo or Restart.

Step 7: If troubleshooting asks to revert to previous reconciliation, click on Undo Last Reconciliation. Perform this step if you have entered incorrect details or if QuickBooks cannot find discrepancies.

Step 8: After double verifying the details, click on Continue.

Screen 2: Reconcile Screen

Here, you refine the choices to match with your bank statement. If after selecting all the transactions, the balance amount is zero, you are done with reconciling transactions in QuickBooks.

Discrepancies which may come up

Reconciling QuickBooks is pretty easy, provided you enter the correct details. Sometimes, human errors do occur causing a non-zero balance amount after selecting all the transactions in the Reconcile Screen. Discrepancies are actually mismatches that occur when the balance amount does not match with the printed bank statement. Check the previous reconciliation details.

So, this was everything that you have to know about QuickBooks online bank reconciliation. Correct details, correct entries, and right steps are what all smooth running of accounts in QuickBooks. In case you found something unclear from the above information, then please contact the QuickBooks Technical Support Phone Number 1-877-263-2742 for more information.