How to Reconcile in QuickBooks Desktop and Online?

how to reconcile in quickbooks

Want to reconcile your Account while using QuickBooks; then you have landed at the right place. Reconciliation is an important aspect of the accounting process in order to validate that the account balance shown in the records matches the amount you have actually spent. Every accounting application must have a utility through which users can review and make sure that the accounts record matches their actual bank or credit card statement. Thus, here we are going to discuss how you can reconcile your account using QuickBooks Online and Desktop.

How to Reconcile in QuickBooks

Reconciling in QuickBooks involves three major tasks, which are as follows:

  • Scrutinize your Opening Balance.
  • Initiate the Reconciliation Process.
  • Validate your Bank account statement with QuickBooks records.

The process to accomplish these tasks differs for both QuickBooks Online and Desktop, which will be discussed later in this blog. Another major query from the QuickBooks user is why there is a need to reconcile their account, for which we have provided some valid reason given below:

  • Through reconciliation, everything matches, and there is a surety that your accounts are accurate and balanced everywhere.
  • While doing any task, there is always a chance for error. In the case of finance, various error involves double payment, wrong entry, missing transaction, and many other. Thus, it is important to cross-check each and every record again to avoid such errors.

Things to keep in handy before you know how to Reconcile in QuickBooks

You need to keep the following records and documents ready by yourself before you reconcile your Account using QuickBooks:

  • You need to have a record of all your Transaction in QuickBooks for the month.
  • Keep your real bank and credit card statements ready with yourself in case you need them while reconciling.

How to Reconcile in QuickBooks Desktop

Follow the given procedure to reconcile your bank account in QuickBooks Desktop:

1.Check your Opening Balance

By opening balance, we refer to the balance amount in your bank account on the day you start tracking your transaction through QuickBooks. To check the opening balance, follow the given steps:

  • Launch QuickBooks and then navigate to the settings option.
  • Then select Chart of Account and then Account History.
  • There you can find the opening balance entry.
  • Note down the opening balance and check it with the balance mentioned in your bank statement of the same date when you started using QuickBooks for transactions.

2.Start the Reconciliation Process

After you have validated the opening balance both in your QuickBooks account and in your real-life bank account statement, follow the given steps:

  • In QuickBooks, select the option Banking, and from that, select Reconcile.
  • You need to select the Bank account or the credit card account which you need to reconcile, along with the statement date for which you want to reconcile.
  • Once you have entered the statement date, the opening balance will automatically be updated, after which you need to enter the ending balance.
  • Provide other minor details like service or the interest earned/deducted, which will be available on your bank statement.
  • Verify all the details, and after that, select OK.

3.Match the transaction on both your QuickBooks Account and Bank Statement

  • Now in the last step, you simply need to compare and check the transaction on your bank account statement and the transaction on your QuickBooks account records. This is a manual process in which you need to check transaction date-wise and, after that, mark a check box once the details have been verified.
  • As you start to check, the cleared balances increase and decrease depending on the transactions.
  • In the end, After the last entry, the difference between the bank statement and QuickBooks should be .
  • After that, click on Reconcile Now.

How to Reconcile in QuickBooks Online

Follow the given steps in order to Reconcile in QuickBooks Online.

1.Check the Opening Balance

  • This is the first step and the mandatory details you need to keep with yourself while reconciling. Select the date for which you want to make the reconciliation and then validate it from the bank account statement.
  • You can also connect your bank account or credit card with QuickBooks, through which you can easily download the transaction records.

2.Start the Reconciliation Process

Once you have matched the opening balance for a particular date, then follow the given steps in order to start the reconciliation process:

  • In QuickBooks, go to settings and then select the option “Reconcile.”  For the users who are doing the reconciliation process for the first time, they need to click on “Get Started.”
  • After that, on the screen, you can find an option “Account,” below which there will be a drop-down menu. From that, you need to select the type of account for which you need to do the reconciliation process.
  • Check the beginning balance, and after that, enter the ending balance and date.
  • Verify all the details, and after that, click on “Start Reconciling.”

3.Validate the QuickBooks Account Transaction and Bank Statement

  • You need to check and compare whether the amounts on each transaction on QuickBooks and Bank statements are an exact match or not. If they are, then you need to mark the checkbox of the entry. Compare and check each transaction, and once you reach the end, make sure the difference between the bank balance and QuickBooks is zero. After that, Select Finish Now.
On an Ending Note

From the above discussion, we hope that now you can reconcile your QuickBooks accounts with the real-life bank records on both QuickBooks Desktop and Online. Make sure that you have a hard copy of all the bank statements of the account with you before you start the reconciliation. You can download the statement from QuickBooks if your bank account is linked with the accounting application.

In case you need any assistance, you can reach out to the number given below. Our technical team provides assistance with any issue you are facing with QuickBooks. You can also connect with the live chat option, where you need to provide your contact details and a little description of the problem you are facing. Our team will revert to you with the required solution within the minimum time possible.

Read also :- Print Pay Stubs in Quickbooks