Knowing your business’s strengths and weaknesses is the first step to running a successful business. As your business grows, your transactions will gradually increase, and the chance of reconciliation also increases. Sometimes users feel that it is difficult to handle such a vast financial process and feel fed up dealing with these bank reconciliations. Here, QuickBooks Online comes to play that offering features like C and R, which will easily manage bank reconciliation.
But can these features really manage reconciliation? What does C and R mean in QuickBooks Online? These are some of the typical questions of most users. If you have such doubts and want to do trial of these features then you can install QuickBooks Online demo and do trial work. In this article, we are going to explain what does C and R mean in QuickBooks Online and how these features will impact your business growth.
How does C in QBO Impact Your Business?
QuickBooks Online provides the “C” or “Cleared” feature to clear the uncleared transactions. This feature plays an important role in managing financial records accurately. This is possible when you use it to clear the uncleared transactions regularly. These uncleared transactions may have affected your financial records and also have a bad impact on your decision-making.
Steps to Clear Uncleared Transactions in QuickBooks Online
Clearing the uncleared transactions is rule number one to manage your financial records perfectly. So, learn how to clear the uncleared transactions effectively.
- Sign in to “QuickBooks Online”.
- Visit to “Banking” section.
- Choose the “pending transactions”.
- Click on review” to check if all the transactions are cleared or not.
- Now, select the transactions you want to clear.
- Review whether all the selected transaction information, correct or not.
- Now save and close.
What does R mean in QuickBooks Online?
Reconciliation is the process of examining the accurate financial records between 2 sets of transactions. This process is used to verify that all the transactions that are made are correct. Reconciliation also helps you to provide accurate financial reports to vendors and investors. It is important to perform regular reconciliation to identify all the errors and maintain an accurate record.
How to Reconcile QuickBooks Online?
Bank statement reconciliation is important in every business because this helps you to create a clear financial report. So, know the quick steps to reconcile your bank statements in QuickBooks Online.
- Log in to “QuickBooks Online”.
- Visit the “Accounting” section.
- Now, select “Reconcile”.
- Then, select the “Account”.
- Here, enter your “Bank Statement” (beginning and ending balance, and ending date).
- Now, match the information, and if all is correct, then click on “cleared”.
- If you want to filter the transactions, you can filter by applying a particular payment, dates, deposit, transaction types, and C.
- Now, check whether all the transactions have been reconciled.
- Check all the transactions properly.
- Now, save and close.
Why is it Important to reconcile the Bank Statements?
Regular reconciliation of bank statements helps businesses to track their income and expense transactions accurately. This reconciliation process helps businesses to reduce unwanted errors. Reconciliation’s value increases when it comes to a business’s tax filing time because taxation needs accurate financial reports. Reconciliation should be done at intervals like monthly and quarterly. The primary purpose of the reconciliation of the bank statement is to ensure that the record of your business and the record of the bank are accurate.
Benefits of Using C and R in Your Business
Having C and R in QuickBooks Online is essential for business. These features can benefit your business in several ways. Some of the benefits are mentioned below-
Protect From Fraud
Fraud increases with irregular reconciliation of transactions. C and R protect your business from missing amounts and unauthorized transactions.
Creating Financial Reports
C and R help in creating an accurate financial report by maintaining correct financial records.
These features eliminate the chance of duplication in transactions.
Business Compliance
Regular reconciliation of the bank statements helps your business to stand in the top position. Accurate financial records allow you to follow rules and regulations accurately.
Cash Flow
Regular reconciliation plays a vital role in cash flow management. It helps you to get the full view of your business finances and show whether your business is making good revenue or running at a loss.
Conclusion
We hope this article on what does C and R mean in QuickBooks Online meets your expectations. C and R are the two that will help businesses manage financial records accurately. However, if you want any more information, then connect to our QuickBooks ProAdvisor.