Reconcile Overview

One of the easiest examples of reconcile is process of balancing a checkbook. You take your bank statement and sit down and make sure what appears on the statement is recorded in your checkbook. At the end you know what your available balance is for that period and it also helps to uncover discrepancies (like unrecognized charges). 

Reconciling your accounts helps you to compare the transactions recorded in QuickBooks Online (QBO) against the transactions processed through your bank.  Only cash-flow accounts can be reconciled; therefore, when you go to reconcile an account, you'll only find accounts listed on your balance sheet in the drop-down box as choices to reconcile.

Once a month your bank will generate a statement for your account. This statement can either be received in a paper version through the mail or electronically online at your bank's website.  We recommend that you reconcile your account when you receive each month's statement.  If you've never reconciled or you haven't been doing it regularly don't worry, just follow the steps below.


Things you will need before starting a reconcile

Before you start a reconcile you will need to make sure you have the following:
  • Begin with the oldest bank statement, and reconcile month-by-month up to the most recent statement
    • The farther back you start, the more likely you are to uncover errors and discrepancies
      • If you've reconciled at some time in the past year, you need to start from that point and move forward
    • You must reconcile against each statement, one after the other, up to the most recent statement
    • Banks can reissue old statements upon request if you're missing any
  • Time, on average a reconcile will take between 1-3 hours


Below are some of the most common questions about reconcile.

Other common questions

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