When you reconcile a bank or credit card account, you compare the monthly bank statement with what you have in QuickBooks Online. You know your bank and books agree when the difference between them is $0.00. Learn more about the rewards of reconciliation.

We recommend that you reconcile your account when you receive each period's statement. However, if you've never reconciled or you haven't been doing it regularly, you can still follow this article to reconcile your accounts. Just start with the oldest bank statement that hasn't been reconciled, and keep going until your reach the most recent statement. The farther back you start, the more likely you are to uncover errors and discrepancies.

TIP: On average, manual reconciliations can take up to an hour. If you connect your bank to QuickBooks Online, it usually takes less than 10 minutes.

Step 1: Enter your statement info and check the beginning balance

  1. Select the Gear icon at the top, then Reconcile.
  2. Select Reconcile Now.
  3. Select the Account you wish to reconcile. Depending on the type of account you select, different statement info fields display.
  4. If the account was reconciled before, look below the Ending date field at the last statement ending date. Make sure you're reconciling the following month's statement.
  5. Confirm the beginning balance on your statement matches the beginning balance in QuickBooks Online. If they don't match, follow these troubleshooting steps. 
  6. Enter the statement Ending balance and Ending date.

    NOTE: If you aren't prompted to enter the ending balance or statement date, you already have a reconcile in progress for that account. You can edit the ending balance or ending date by selecting Edit info once you're in the Reconcile module.

  7. Enter any additional information requested. If your statement doesn't have an amount for any of the additional fields, you can leave them blank. Note that if you're attempting to reconcile an account that is connected to online banking, the Service Charge, Interest Earned and Finance Charge (credit cards) fields are no longer displayed, as these entries are downloaded automatically. 
  8. Select Start reconciling .

Step 2: Verify all transactions are captured

Ensure the total number of transactions for each transaction type between your statement and QuickBooks Online matches. If they don't match, follow these steps:

  • If the number of transactions is off by one, the difference amount at the top of the Reconcile window might be the same as the transaction you're looking for. You can use the filter to search for that amount.
  • If your statement has more transactions than QuickBooks Online, look for: 
    • A transaction that wasn't marked as cleared (given a checkmark)
    • A transaction that wasn't entered in QuickBooks Online
    • A deposit that was entered as a payment or a payment as a deposit
    • A charge that was entered as a deposit or a deposit as a charge
    • A transaction that is dated after the statement end date
    • A transaction that was entered in a different account by mistake
    • Foreign transaction fees
  • If your statement has fewer transactions than QuickBooks Online, look for:
    • A transaction that was mistakenly marked as cleared
    • A transaction that was entered twice in QuickBooks Online
    • A deposit that was entered as a payment or a payment as a deposit
    • A charge that was entered as a payment or a payment as a charge
    • Bank charges that were entered and selected twice
  NEW! Accounts connected to online banking have additional features to assist with reconciliation:
  • Cleared date column: This is in addition to the transaction date column, the cleared date comes from the bank and represents the date the transaction cleared the bank
  • Automatically alert user when they have transaction date and transaction cleared date discrepancies. This is helpful for two scenarios:
    • Transaction has a manually entered transaction date within the statement period, but it cleared after the statement end date. We now automatically uncheck this problem transaction alert user to this change.
    • Transaction has a manually entered transaction date after the statement period, but it cleared prior to the statement end date. With this date discrepancy, the problem transaction is hidden from view because it is dated after the statement end date. We present the user with an alert to Show Hidden Transaction.
  • If the account is currently connected to online banking but the transaction did not originate from the bank, or have a match from the bank… it will not have a date within the cleared date column and the automation detailed above does not apply.

Step 3: Mark transactions as reconciled in QuickBooks Online until the difference is zero

  1. On the account statement, find the first transaction, then find the same transaction in the Reconcile window and make sure it's correct. 
    • Select the transaction if its correct. 
    • If a transaction amount is incorrect, select it and manually adjust the amount in QuickBooks Online. Select the transaction once corrected.
  2. Repeat for each transaction listed on your statement.
  3. After reviewing all transactions, look at the difference at the top of the Reconcile window.
  4. If it equals zero, hooray! You're done. Select Finish now from the drop-down at the top right.
  5. It it doesn't equal zero:
    • The problem may be the result of a bank error if you can't find errors in QuickBooks Online. See handle errors on your bank or credit card statement for details.
    • If you still can't get the difference to $0.00, we recommend that you work with your accountant to locate the error. It's always better to find and correct the original error than to make an adjustment. However, your accountant may suggest an adjustment if the difference amount is small. See how do I adjust a reconciliation?