QuickBooks Online bank reconciliation means syncing your bank account and credit card account details with QuickBooks Online. This is very important for you to know how to reconcile the account in QuickBooks Online. Since it will help you to keep track of how much you have earned and spent. This article is to provide you all the details and information you need, so read the article and stay with us for more details about the reconciliation process, report, reconciliation Discrepancies, etc. If you have any query then contact our QuickBooks ProAdvisor toll-free: +1-844-405-0904
And it is important that the ending balance of the previous month should match the starting balance of the next month. You should reconcile your bank account monthly almost at the same time when your monthly bank statement is issued.
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What is Quickbooks Bank Reconciliation?
It is a process of matching data entered by you in QB with the physical data that clears your account. If you miss any entry while entering data into the software it can cause great damage to your whole accounting system.
So, it is very important for us to catch the missing entry. This is the reason why Many small business holders use the running bank account balance feature in the QuickBooks software which catches every missing entry.
Reconciliation is extremely suggested to be done on daily basis. So, that all the discrepancies between your record and bank record can be resolved.
There might be a question that comes to your mind how do I reconcile in Quickbooks Online? Don’t worry about it, You can easily reconcile accounts in QBO. When you reconcile with your bank account, your account gives most of the information related to transactions. You add your oldest bank statement that has not been reconciled and you will compare the monthly bank statement with the registered transactions within QuickBooks and that difference between them should be ZERO! Now reconcile process is complete.
You should match each of the deposits in your report to those eminent on the bank statement. If you have listed a deposit that the bank had not yet collected concurrently with an activity the month, list this deposit as a piece of reconciling information that should be added to the bank’s ending cash balance for your account.
Is it important to reconcile account in QuickBooks Online?
Your financial reports will not worth anything if balances in QuickBooks are not matched with your bank and credit card statements. At the end of the financial year when you file tax returns reconciling your account will help in process it precisely with ease.
Another reason is that you’ll be always aware of the funds you have in your account and helps you in taking better decisions regarding your business.
Advantages of Quickbooks Bank Reconciliation Online
QuickBooks can identify future transactions and save your time and effort in the long run. You will benefit from these QuickBooks bank reconciliation feature:
- It syncs automatically with one – or multiple bank accounts
- It will automatically take your records and sorts them into sections according to your suitability
- Gives you the possibility to disappear any transactions that are not fully completed
- Ignores any transactions that have not cleared the bank
- Matches transactions to your bank statement transactions.
How to reconcile account in QuickBooks Online?
- Navigate through the left side panel and click on the ‘Accounting’.
- And then select the ‘Reconcile’ option.
- Now a new window will pop-up which will ask you to choose the account you want to reconcile.
- Here, you can select the account using the drop-down menu.
NOTE: Sometimes you receive a message ‘Your account isn’t ready to reconcile yet’. This could happen due to reasons like changing the date of transactions, deleting or voiding any previous transactions. You can fix it by clicking the blue link saying ‘We can help you fix it’.
- By clicking the fix it, you will redirect to the page ‘Reconciliation Discrepancy Report’. Here, you’ll be instructed how can you fix the deviation.
- After the issue is fixed. You can select ‘Resume Reconciling’ for further process.
- Now you need to mention some information in ‘The Beginning Balance’, ‘The Ending Balance’, and ‘The Ending Date’ into their respective fields.
- You need to enter the last date of the month which you want to reconcile account in QuickBooks and provide the ending balance of the month. The beginning balance will be auto-filled according to the ending balance of last month.
- After every specified field is filled correctly, Now you can ‘Start Reconciling’.
- Then you’ll be land on another page where you can see the list of all transactions, deposits, etc. Here you need to compare this list with your bank statement and tick all the complete transactions until the difference in balance is zero.
- You can also apply some filters to simplify the list and will help in finding transactions easily. There are filters like Payments, Deposits, cleared status, payee name, and others.
- After checking the transactions list you can finish reconciling right away or you can save for later if your difference in balance is still not zero.
- When finally reconciling is done you can select ‘View Report’ or simply ‘Done’ if you don’t want to review your reconciliation report right now.
A QuickBooks Bank Reconciliation report is a self-generated report by QuickBooks Online after the end of the reconciliation process. You can use this report to analyze your business financials and also the report provides a brief about the beginning and ending balance of the month. You can also see the cleared and the uncleared transactions from that month.
How can I view the Reconciliation Report
These are the steps for viewing your reconciliation report.
- From the left side panel select ‘Reports’.
- Then in a search bar type and select ‘Reconciliation Report’.
- Select the account for which you want to view a reconciliation report.
- In the drop-down menu mention the time period.
- Finally, you can see the report.
This happens when the difference of amount between the QuickBooks Online account and the bank statement is not zero.
If there is a difference in the opening account balance then the reason could be that previously reconciled files have been deleted, modified or any new file has been added.
Other reasons behind this could be like some extra charges bank applied, you entered some checks in QuickBooks but your bank still not cleared those checks, you forget to feed those transactions in QuickBooks that your bank posted. These are some anomalies due to which there is variation in the amount.
You can avoid these roadblocks by simply adding these transactions in QuickBooks Online as soon as it happened.
Frequently Asked Questions
How to Unreconcile an Account in QuickBooks Online?
When your QuickBooks balance doesn’t match with your bank account statement sometimes it is necessary to unreconciled that account. For this first, you need to go to Banking Menu and then Registers. After that select the account from the Drop-Down menu. Then select the transaction you want to reconcile and click on “R” at the top. Your transaction will be unreconciled.
How frequently should I reconcile the account in QuickBooks?
You should at least reconcile your account once every month. Best time is when you received your monthly bank statement or credit card statement.
As we discussed above reconcile accounts in QuickBooks Online is a very helpful exercise to perform at least on a monthly basis. But we know sometimes it comes out to be slightly difficult for some users to execute it perfectly. Therefore, we offer you our service QuickBooks ProAdvisor in which certified experts will provide you an instant solution to your problem.
Get in touch with us, call us at our Toll-Free number +1-844-405-0904.