Just like balancing your checkbook, you need to regularly review your accounts in QuickBooks. You need to make sure the amounts match your real-life bank and credit card statements. This process is called reconciling (or a reconciliation). You now know how to process bank reconciliation in QuickBooks Online. The next lesson in our tutorial series is on managing downloaded credit card transactions in QuickBooks Online.

It needs to match the balance of your real-life bank account for the day you decided to start tracking transactions in QuickBooks. Once you have your monthly bank statements, you can reconcile your accounts. You’ll compare each transaction in QuickBooks with what’s recorded expanded accounting equation on your bank statement. At the end, the difference between the account in QuickBooks and your bank statement should be US $ 0.00. Within the bank reconciliation screen, you will see a list of all transactions in QBO for the period you are trying to reconcile.

How do I reconcile my accounts in QuickBooks?

The QuickBooks reconciliation screen contains a summary of cleared transactions at the top and a detailed list of transactions at the bottom. Easily run financial statements that show exactly where your business stands. Access your cash flow statement, balance sheet, and profit and loss statement in just a few clicks.

Either way, there’s no need to panic, because Intuit offers helpful articles on how to fix incorrect/zero beginning balances and dealing with reconciliation discrepancies. Give your accountant direct access to your books so she can find the reports and information she needs when questions arise. Create a separate login for your accountant to make it easy for her to work with you. You can exchange messages and share documents directly inside QuickBooks, too. Since all of your transaction info comes directly from your bank, reconciling should be a breeze.

Why Bank Reconciliation in QuickBooks Is Important

If you reconciled an account more than once, you likely already reviewed the opening balance. Use this guide anytime you need help doing or fixing a reconciliation. If you’re new to reconciliations or need more help, reach out to your accountant. This can get tricky and they know how to handle the next steps. Alternatively, you can invite an accountant to help you reconcile the transactions and this is to make sure that all of your records are in order. Allow me to assist you further and ensure you’ll be able to match your bank statement in QuickBooks Online (QBO).

Reconcile an account

You can use a bank rule to create a new transaction pre-filled as indicated on the bank rule. Or you can add a new transaction from scratch from this screen. First, let’s undo your reconciled statement by manually unreconciling each transaction. When you’ve entered all the information from your bank statement, click the green Start reconciling button to continue. You’ll want to look at your statement, starting with the first transaction listed and find that same transaction in the Reconciliation window in QuickBooks. For QuickBooks Premier or higher, you have access to the last 120 previous reconciliation reports.

How to Reconcile in QuickBooks Online

From the dashboard, select Banking from the Company menu on the far right, then select Banking to get to the main overview screen. If you have further concerns about matching your downloaded transaction, please add them to the thread and I’d be happy to assist you further. If you signed up to try a new way to reconcile in QuickBooks Labs, click here. You’re in the right place to learn about the current QuickBooks reconciliation. This website is using a security service to protect itself from online attacks.

Learn the reconcile workflow in QuickBooks

If you can’t find a matching transaction, you can mark it as an outstanding transaction or create a new transaction in QuickBooks. If you have been at it for a while and you need a break, QuickBooks allows you to pick up where you left off. Click the Finish later button to save the work you have done so far. Sometimes, taking a breather can help you spot what’s causing the difference. If the difference is not zero, we recommend that you try to locate transactions that aren’t recorded in QuickBooks.

We know that taking hours to find amounts that are off by a few pennies doesn’t make sense. In QuickBooks, you have the option to make an adjusting entry if the difference isn’t zero when you are finished reconciling. However, adjusting entries should be made only as a last resort for small amounts.