The reconciliation of the transaction in the Quickbooks software is meant to verify all the user-generated transactions with the bank or credit card record to ensure that all the transactions are recorded properly. hence, this process can be also used to check the accuracy of the accounting software. while reconciling the Quickbooks software if you are getting any connection issues then you can use the Quickbooks connection diagnostic tool to troubleshoot the issue in no time.
- the Quickbooks Accounting software keeps managing all the transactions like payments, bank fees, deposits, etc.
- the ending balance in the Quickbooks bank register will match to the account balance in your bank.
- Keep a backup of your company file in the Quickbooks.
- make sure to check the initial balance of your bank and the Quickbooks account is the same.
- fill all the transactions that are uncleared during the statement period.
- Maintain the data of your bank and credit card properly.
Follow Steps To Start Reconciliation In Quickbooks
In this window, you will be required to select our bank account and the credit card to reconcile the information in the Quickbooks software. make sure to check all the given information before proceedings to the next step. the user will be able to review the given information to ensure everything has been updated properly.
In Order to open the Reconciliation tab, click on Banking and then open the reconcile option.
- Go to the Account option and then select the bank account or the credit card which you want to reconcile.
- after clicking this, the statement date will present automatically on the screen. the default date will be around 30-31 days after the last statement data. you can even change it manually as per your requirement.
- once you will finish this the beginning balance will be filled automatically. you need to check that you have the same opening balance in your account as well.
- enter the balance in the ending balance field from the statement.
- while entering the data in the Quickbooks account if you haven’t entered the service charges and the interest earned then enter them from the statement. make sure to not repeat the charges in the transactions.
- Now you will be required to click on Locate Discrepensies to see the reports to verify the reconciliation issues and to track the discrepancy. here at the discrepancies tab, you will also get the option to restart or undo the reconciliation process.
- if you need to go to the last reconciliation process in order to fix any kind of issue then you can click on the Undo option.
- after entering and verifying all the information, click on Continue to complete the reconciliation process.
When you can use the Undo Option in Reconciliation
while processing the reconciliation process you may require to use the Undo option when you will not be able to locate the discrepancies or you may need to change the date of the opening balance. when you will click on the Undo option it will unclear the previous transaction and the balance will be changed according to the removed transaction.
Reconciliation Screen features and Options
In the reconcile screen you will get various options to filter the data in order to check with your bank statement. here you will be required to select the transactions in order to clear them. if after selecting all the transactions of your screen if you are not experiencing any difference on the screen then you need to click on Reconcile option and the process will be completed.
- Hide the Transaction: this feature will allow you to see the list of the transactions of only the statement period you have selected for the reconciliation process. you can select the checkmark of the transactions you want to hide.
- List of transactions in Quickbooks: these Quickbooks transactions will be divided and listed into two parts. it will be the checks/payments or the deposit/credits which will determine the cashflow. while if you are doing the reconciliation process for the credit card then it will be charges/advances and payments/credits. you can validate the transaction using the statement you have from the bank or the credit card company. Select the transaction which is present in your statement and make sure to check that both the amounts are the same. now while selecting the transactions you will encounter that the cleared balance will change.
- Items Marked cleared: this option will let you see all the credits and deposits transactions you have selected on the screen. if you need to check any kind of discrepancies then this is the best feature to use.
- Mark/Unmark option: this option will allow you to select the transaction you want to verify with your statement.
- Go to option: If you want to make small changes in the transaction then you can use this option.
so in this way you can perform the reconcile in Quickbooks software. if you have encountered any kind of Quickbooks error while performing this process then you can get assistance from the experts.