Reconcile an account in QuickBooks Online

You can make changes to past reconciliations, but be careful. Changes can unbalance your accounts and other reconciliations. We’re here to help simplify things for you with this guide on how to create an accounting system for a small business. As an accountant or a business owner, it’s your job to be proactive in order to avoid this risk or notice it as soon as possible to minimize potential damages. After Quickbooks does the reconciliation, you will be presented with a report chock full of information.

Let’s go over what you need to pay attention to in this report. On top, you will see a summary including the beginning and ending balances, payments, and deposits. Once you’re done, you should see a difference of $0, which means your books are balanced. Lastly, select Finish now and you are good to go. In fact, financial fraud has been shown to take place almost every 15 seconds in the United Kingdom.

Reviewing documentation consists of checking the amounts shown on invoices or receipts, compared with the corresponding amounts shown leaving or entering the account in question. Since all of your transaction info comes directly from your bank, reconciling should be a breeze. In some cases, your accounts are already balanced. Then, you will see a complete breakdown of all transactions. Each transaction will show the date of the transaction, the date it was cleared, the type of transaction, a reference number if applicable, the account, and the payee. On the right, you will see a green symbol that indicates whether the transaction was matched in the banking feed.

This is especially important to ensure that your accounts are all in order. If your accounts are connected to online banking, make sure you match and categorize all of your downloaded transactions. (If you’re in the middle of reconciling, stay on the page you’re on and skip to step 4).

Step 3: Read Over the Reconciliation Report

If you need to reconcile more than one month, do them one statement at a time, starting with your oldest statement. When you reconcile, you compare two related accounts make sure everything is accurate and matches. Just like balancing your checkbook, you need to do this review in QuickBooks.

The Ultimate Guide to Reconciliation & How to Do It on Quickbooks Online

1. Reconciling your accounts is an important part of managing your finances in QuickBooks Online.
2. After entering the statement date and ending balance, you’ll see a list of transactions that need to be reviewed and matched.
3. In this article, we’ll go over the ins and outs of reconciliation, and a step-by-step guide on how to reconcile on Quickbooks.
4. When you reconcile, you compare two related accounts make sure everything is accurate and matches.
5. Changes to completed reconciliations can unbalance your accounts and other reconciliations.
6. Go through each transaction and ensure that it matches the transactions on your bank or credit card statement.

You can also make small edits if needed right within this window. For example, if the payee is wrong, you can click on the transaction to expand the what is variable costing view and then select Edit. Once the difference is $0.00, you’ve completed the reconciliation process. If you forgot to enter an opening balance in QuickBooks in the past, don’t worry.

Step 1: Select an account to reconcile

Once you’ve reviewed and matched all transactions, QuickBooks will calculate the difference between your records and your bank or credit card statement. If the difference is zero, you’ve successfully reconciled your account. If the difference is not zero, you may need to review your transactions again to find any discrepancies. After entering the statement date and ending balance, you’ll see a list of transactions that need to be reviewed and matched. Go through each transaction and ensure that it matches the transactions on your bank or credit card statement.

If you adjusted a reconciliation by mistake or need to start over, reach out to your accountant. If you reconciled a transaction by mistake, here’s how to unreconcile it. You can start reconciling once you have your monthly bank or credit card statement.