In an earlier post, we discussed what is QuickBooks Bank Reconciliation & why to do it. Today we are going to discuss the process of setting up Bank Reconciliation in your QB software.
Before starting the discussion, Understanding the reports is very important in accounting. As we know very well that before implementing something you should have some information about it. In this article, we will give you the overview of reports generated after online QB bank reconciliation which will help you a better understand.
Don’t worried about what is Reconciling and why should I worry about It? Reconciling process gives you comfort zone to handle your bank account easily and proper way without any confusion. Once you reconciling your bank or credit card account you can easily compare the beginning balance and all the transactions listed within your QB company file. You can compare monthly statements created by a bank or credit card company and there you could make sure they match and its save your time.
Importance of Online 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 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 the question come in your mind how do I reconcile in Quickbooks online? Don’t worried about it, You 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 reconciling information that should be added to the bank’s ending cash balance for your account.
Get tech support for QuickBooks. Feel free to contact our help desk number 1-855-441-4417.
6 Simple Steps to set up Quickbooks Bank Reconciliation online.
Navigate to the Reconciliation Menu:
First, you choose Reconcile, By going to the home page then click on the Gear Menu which is left your company name and then click on column heading Tools and select the Reconciliation Tab.
Select Bank/Credit Card Account:
From the drop-down menu options, choose your bank/credit card account which you want to reconcile from the drop-down menu options.
After selecting your account, click Reconcile Now.
Enter Statement Details:
Check a copy of bank statement for the account you are reconciling with QuickBooks.
Note down of the statement End date and the Ending Balance amount.
Go back in QuickBooks Online and click on Reconcile overlay. Fill your Statement End Date into the Calendar drop-down menu.
Now go to the Reconcile overlay and enter your statement Ending Balance, and Click OK when you have finished.
Begin Match Expenses:
Check your bank account Transaction history for your statement and notice the transactions.
Open the Reconcile window, match each transaction from your bank statement with an item in the list, you clearly match all transactions and checking the box to the right of each transaction to match.
Statement Ending Balance:
It shows the amount you entered from your bank/credit card statement.
This is the ending balance from last month’s statement.
When you begin to reconcile each item, this amount will change depending on whether you have selected a payment or a deposit transaction.
Payments will increase when you select payments to reconcile from the detailed transaction section below.
When you select deposits to reconcile from the detailed transaction below this transaction will increase.
QBO calculate the difference. Its show the result between your statement balance and the cleared balance, the difference is zero is a good result for you.
We share an example with you for your better understanding, When you spend a money with QBO so you check total withdrawals or payments on your bank statement ($2548.25) match the total withdrawals we have cleared in QuickBooks ($2548.25). If it happened, you can move onto the next step.
Sample Bank statements:(For Example)
Beginning Balance on 1/1 $150.56
Withdrawal Debits – 2548.25
Ending balance on 1/31 $1760.55
When you achieve a goal difference value at the bottom to zero. Now click Finish now button to generate the bank reconciliation reports. Now, your QuickBooks online bank reconciliation process is finished.
Examine the Reconciliation Report:
Now you check your Reconciliation Reports, go back to in the reconcile menu you will see the reconciliation you just entered, and click on it to open a detail window for checking purpose.
Now Click on Run Report to open a detailed of your reconciliation.
In accounting, the report plays an important role to make any decision. Reporting helps us examining the data we have entered in reconciliation. It also helps us to keep the records of the transactions that can be required in the future.
If you want to print your bank reconciliation QuickBooks Online reports, you can click on report window and print your reconciliation report. You can print more copies if you want to give to others.
Tip#1. You can make a folder which names Bank/credit card account and which will save all bank reconciliation reports in it.
Alternatively, you can also use another method by following the steps below mentioned to get the detailed report
- If you want to see reconciliation report first of all click on “Gear button”
- Click on “Reconcile“ tab to under the drop-down menu of tools
- From the upper right corner of the window click on “Reconcile History”
- Select the account from the “Account” drop-down.
- Now, you can open the report by clicking on “View report” under the “Action” tab.
- Finally, to print this report click on “Print” in the upper right corner of the report.
The above information will help you properly. If you are still unable to fix this issue or you need any more help and best support, dial QuickBooks Customer service number 1(855) 441-4417.
How to Reconcile Your Accounts in QuickBooks
Read more useful articles: