Learn How to Reconcile in QuickBooks Online
Reconciliation means comparing two accounts and ensuring that they match and are correct. Many users wonder how they can reconcile in QuickBooks Online when using the software. This process lets you match your cash flow as it shows in your bank statement with the entries in QuickBooks Online. Learning how to reconcile in QuickBooks Online will help you make your business existence healthier.
As a best practice, reconciling bank and credit card accounts in QuickBooks must be done frequently. You should ensure that they correspond with your real-life bank accounts. This article will explain in detail the procedure of reconciling in QuickBooks Online.
Steps to Reconcile a Financial Statement in QBO
To reconcile a bank statement in QBO, follow the stepwise procedure below:-
Head to the Reconcile page by tapping on ‘Accounting’ followed by ‘Reconcile.’
Once there, choose the account to reconcile.
If you get a notification saying that your account isn’t ready to be reconciled, tap the ‘We can help you fix it’ link.
If you don’t get this alert, tap ‘Reconcile.’
If you choose the ‘We can help you fix it’ link, you will be taken to the Reconciliation Discrepancy report.
Once the issue has been fixed, return to the Reconcile page.
Here, tap the Reconcile link at the report’s top right part.
Now you will see three fields, namely, the Beginning Balance, the Ending Date, and the Ending Balance.
In the Ending Date, input the relevant month of the bank statement.
Now, in the Ending Balance, input the ending balance that the statement displays.
You don’t need to fill out the Beginning Balance field, as it will be automatically filled with the ending balance of the earlier month.
Now tap ‘Start Reconciling.’
You will now be taken to another page which you should examine against the bank statement.
Check off the transactions that show ‘As cleared’ on the bank statement.
To make it easier to find transactions to check off, apply filters.
Tap the filter icon to see options for filtering.
Finally, when you clear off all the transactions, you will see ‘Success! You reconciled your account window.
Run the reconciliation report by tapping ‘View report.’
Fix Common Problems in QuickBooks Banks Reconciliation
Sometimes you may encounter issues in reconciling accounts in QuickBooks. Some reasons for these issues can be missing checks in QBO, incorrect adjustments, incorrect entries, and missed transaction entries.
Use these measures when you find that your transactions in QuickBooks do not correspond to those in your bank statement.
Review the balances and check the reports.
Firstly, review all the opening and beginning balances. They must be correct. After that, check different reports in QuickBooks. Run a reconciliation discrepancy report with these instructions:
Choose ‘Reports’, and from the banking menu, pick ‘Reconciliation discrepancy.’
Select the account you are reconciling and hit ‘OK.’
Review the report and find any inconsistencies.
Run the missing check report.
Find out if any checks are missing using these steps.
In the ‘Reports’ menu, choose ‘Banking’ and then ‘Missing Checks.’
Select the account to reconcile and then hit ‘OK.’
Now review the report and determine transactions that aren’t included.
Run the transaction detail report.
In the ‘Reports’ section, choose ‘Transaction Detail.’
Select the latest date of the account in the ‘Date From’ section.
Choose the date of the recent reconciliation.
Now, select ‘Filters.’
Choose the account you are reconciling and set the date.
Modify the date to the present one.
Click ‘OK.’
Summing up
QuickBooks bank reconciliations should be done every month. They help you know your business net worth, catch errors and converse with your accountant efficiently. Consult a QuickBooks expert to learn more about it.
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