Quickbooks Online Bank Reconciliation

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Quickbooks provides world-class accounting solution to keep track of your business performance and productivity. Quickbooks Online reconciliation is the best way to verify that all your financial transaction is verified with your bank or credit card statements. you can perform the reconciliation process with your bank or credit card by comparing the transaction mentioned in the Quickbooks account with the monthly generated statements from your bank or credit card company. If you have a reconciled account then it means the transactions in Quickbooks matched completely with the statements from your bank and the only difference is coming because of the open checks.

Quickbooks Online reconciliation

Brief Introduction of Quickbooks Online Reconciliation

the reconciliation process is performed due to various reasons that include the to minimize the calculation time of the tax, any fraud by the employees, any kind of error by the bank, accounting professionals, build a strategy to improve business, etc.

With the Quickbooks Online, you have to reconcile all the transaction with your bank. the transactions in the Quickbooks online will include forms, bank-feeds, third-party app data, etc. the reconciliation is mostly performed for credit card accounts, checks, savings, etc. even some times we may also include some of the accounts like liabilities or expenses.

Method of Quickbooks Online Reconciliation

here is the method you have to follow in order to execute the Quickbooks Online reconciliation process.

Step- 1 Open the Reconcile Page

Reconcile an Account in QuickBooks Online

  • You have to open the reconcile page.
  • open the Quickbooks software and then click on the Accounting option from the left.
  • You can open the gear icon and then click on the reconcile option from the tool.
  • the reconcile page will open on the screen.

Step- 2 Select the account for reconciliation

After you have opened the reconcile page now you have to select the account from the list that you want to reconcile.

Select Reconcile or Resume reconcile option

While if you have encountered an issue like its showing that the account you have selected cannot be reconciled for now then it means we have altered an existing reconciled transaction. so you have to resolve this issue. below the issue, you will get an option that will say “here we will assist you in fixing this”.

while performing the reconciliation process there are some common errors that users can make.

  • Wrong transaction date/modification.
  • Deletion of reconciled transactions.
  • modification in the source account.

Make sure to avoid these errors to avoid any kind of Quickbooks discrepancies. If you want to make any kind of changes then make sure to cross-check with your accounting before performing it to avoid any kind of errors.

Step- 3 Provide Statement Information

  • Open the reconcile page again and then click on the link.
  • here you have to enter all the statement information.
  • you have to mention here three important fields that are beginning balance, ending balance, and ending date.
  • the end date will be of the month you want to reconcile the data.
  • enter the beginning and the end-balance and then click on “Start reconciling”.

Step- 4 Match transactions

  • Now check these transactions with the statement of your bank account or credit cards. you can cross-check all the transactions including the deposits that are mentioned in the bank statement.

Match Transactions

  • make sure to verify all the transactions properly. it will start lowering the difference between the cleared and statement ending balance.

Step- 5 Apply Filters to Find Transactions

the filter feature in the accounts transactions will help you in locating specific transactions. you can use these filters to find the transaction to speed the reconciliation process.

In the filtering option, you will get multiple choices to select from like transaction type, cleated stated, date, payee, etc. and using the find option you can look for memos, amount, etc. follow these ways to filter out the required transactions. Click on the edit info tab to edit any kind of information from the statement.

If the difference between the statement balance and the cleared balance is still not zero then you can take some rest and then restart the work again later.

Step- 6 Cleaning transactions

if you will complete the reconciliation page then you will get a message on the screen which will say “Success ! you reconciled your account”. now you can click on Done if you want to run the reconciliation report.

Hence this way, we have reconciled the Quickbooks account with your bank statement. it is advised that you should perform the reconciliation process once in a month to avoid any kind of issues. make a habit to execute the reconciliation process right after receiving the bank statement. you can setup Quickbooks online to access the software from any device remotely.

So with this blog, now you know how to reconcile in quickbooks online step by step. If you will follow all these methods accurately and don’t get any discrepancies then you will be able to perform the reconciliation process without any errors. however, if you have encountered any kind of Quickbooks error during this process then contact the professionals.