2 DIYs To Fix Reconcile Bank Accounts in QuickBooks Online Issues

In this application, it is important to check your account regularly and make sure it matches your bank and credit card statements. This procedure is known as reconciliation. Reconciliation of your bank account in QB is important for keeping your business’s financial records accurate. It guides you in identifying inconsistencies, such as missing or duplicate payments, errors, or unauthorized charges, that might otherwise go unnoticed. It also helps to keep the accounts up to date. This blog will provide you with information to reconcile a bank account in QuickBooks Online. 

Why is it Crucial to Do Bank Account Reconciliation in QB?

• The chart of accounts is the base of your accounting, whereas bank reconciliation is the monthly check that confirms your financial data is accurate

• Maintain your bank reconciliation up to date 

• The ending balance of each month should correctly match the next month's starting balance

• QB should record your income and expenses based on information from your bank and credit card companies

• In certain situations, your accountant may handle your QBO bank reconciliation for you

Converting your bank reconciliation from Xero to QB is not a direct transfer; it is a multi-step process that requires completing all reconciliation procedures in Xero, exporting the reports, migrating your previous data, and reconnecting your bank feeds in QB. Now, after the data is switched, you have to perform a complete reconciliation in QB for the previous transactions and continue your basic monthly process going forward. To convert from Xero to QuickBooks is a complex process, for which you should refer to our dedicated blog, which explains it in detail under the experts' guidance. 

Procedure to Reconcile Bank Account in QuickBooks Online

Below, we have discussed three steps to perform this reconciliation process for the QBO: 

Step I: Start with reconciliation 

• Under the account that is linked to online banking, you first have to match and categorize all the transactions you downloaded

• Choose Settings, then Reconcile in QuickBooks Online. To continue, pick Get Started if you’re reconciling for the first time

• Select the account you want to reconcile under the Account page drop-down menu. Verify whether it’s the same as the one on your statement

• Check the Beginning balance. Ensure your QB beginning balance matches one on your statement. And if it doesn’t they you have to do the points mentioned below: 

• In your statement, you have to provide the Ending balance and Ending date. Ending balance is sometimes indicated as New balance or Closing balance by a few banks

• Now, check the last statement's ending date if you get to see it. Basically, this is the last time you have to reconcile your account. 

• Now your current bank account statement begins

• At the end, you have to click Start Reconciliation 

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Step 2: Now, make a comparison between your statement & QB

• You have to reconcile the bank account that is connected to QBO:
  • You need to start with the first transaction on the statement
  • Then, look for the same transaction in the Reconciliation window in QB application
  • Now, compare the two transactions. If they match, you need to put a check mark next to it in QB. This will make it reconciled
  • If any transaction does not display on your statement but is there in QuickBooks, do not put a tick mark on it
  • In the same way, you have to compare all the transactions in your statement with what is in QuickBooks
  • If you get any transaction that is incorrect, such as the payee, you can select the transaction and expand the view. Now, you will get the Edit button to make the edits as required
  • As you reach the end, the difference between your statement and QuickBooks should be 0. If it is, then you can click the Finish Now button
• Now, reconcile bank accounts that are not connected to QBO:
  • Here, you also have to start with the first transaction on your bank statement
  • Look for the same payments in the reconciliation screen
  • Compare the two payments, and if they match, you have to put a tick mark on it, and it will be reconciled
  • Moreover, if any transaction is not available on the statement, you are not supposed to tick mark that
  • Now, compare all the payments in the statement with the application
  • If you notice a transaction that matches your QB records and bank statement as well, but has minor changes, such as the payee, click on it to expand the details
    Choose Edit > make the required changes
  • Once you’ve reviewed everything, the difference between your bank statement and QuickBooks should show $0.00. When it does, click Finish Now to complete the reconciliation

Summary 

With this blog, you will be able to reconcile bank accounts in QuickBooks Online issues smoothly. However, if you need any technical help, you can dial +1.833.802.0002 to connect with QDM experts instantly. 

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