Reconciling your accounts helps you to compare the transactions recorded in QuickBooks Online against the transactions processed through your bank. This article covers what a Reconcile is, why you should do it, and how to do it.

Note: If your account is showing Powered by Stripe on the enter credit card processing page, see Stripe Reconciling​ instead.

Overview
Reconcile a connected account
Reconcile manually
Frequently Asked Questions

Reconcile overview

One of the easiest examples of a reconcile is the process of balancing a checkbook/chequebook.. You take your bank statement and make sure what appears on the statement is recorded in your checkbook/chequebook. At the end, you know what your available balance is for that period and you can uncover any discrepancies (like unrecognized charges). 

Only cash-flow accounts can be reconciled. When you go to reconcile an account, you'll only see accounts listed on your balance sheet in the drop-down box as choices to reconcile.

Periodically, usually once a month, your bank will generate a statement for your account. You receive this statement either as a printed version in the mail or an electronic version online on your bank's website. We recommend that you reconcile your account when you receive each period's statement. Banks can reissue old statements upon request if you're missing any. If you've never reconciled or you haven't been doing it regularly, don't worry, just follow the steps below.

Important: Before you start a reconcile, make sure you have copies of all bank statements since the last time you reconciled.

  • Begin with the oldest bank statement since the last time you reconciled. The farther back you start, the more likely you are to uncover errors and discrepancies.
  • You must reconcile against each statement, one after the other, up to the most recent statement.
  • On average, manual reconciliations can take up to an hour.  If you have your bank connected to QuickBooks Online file, it usually takes less than 10 minutes.

Reconcile a connected account

  1. Select the Gear icon at the top, then Reconcile.
  2. Select Reconcile Now.
  3. Select the Account you wish to reconcile
  4. If the beginning balance does not match the balance listed on the bank statement, see troubleshoot an account reconciliation for steps to correct it.
  5. Enter the Ending balance.
  6. Enter the Ending date.
  7. If there are any service charges, enter the Date, Service charge, and Expense Account.
  8. If there is any interest, enter the Date, Interest Earned, and Interest Account.
  9. Select Start reconciling.
  10. QuickBooks will check off all downloaded and accepted transactions.
  11. In the upper right section of the screen, confirm that the Difference is 0.
    • If the Difference isn't 0, confirm that the opening balance and the ending balance match the bank statement.  If you need to edit this information, select Edit Information from Statement to change the information you entered in the popup interview when you started the reconciliation.
    • For more information on what to do if the Difference still isn't 0, see troubleshooting your reconcile or select Help at the top right of the screen and then type Reconcile
  12. Once you've confirmed the difference is 0, select Finish now.

Reconcile manually

  1. Select the Gear icon at the top, then Reconcile.
  2. Select Reconcile Now.
  3.  Select the Account you wish to reconcile
  4. If the beginning balance does not match the balance listed on the bank statement, see troubleshoot an account reconciliation for steps to correct it.
  5. Enter the Ending balance.
  6. Enter the Ending date.
  7. If there are any service charges, enter the Date, Service charge, and Expense Account.
  8. If there is any interest, enter the Date, Interest Earned, and Interest Account.
  9. Select Start reconciling.
  10. On the Reconcile screen, we recommend checking the box in the upper right Hide transactions after the statement's end date.  This helps you only to see the transactions listed on the statement you're reconciling.
  11. In the Payments section, add a check mark to all checks/cheques and payments that match the checks/cheques and payments on the bank statement. Checking the box at the top left next to the date will check all the boxes.
    • Note: Bank statements usually have a total figure for the amount of checks/cheques and payments which should match the amount listed for the total checked amount in checks/cheques and payments.  If it doesn't match, compare the transactions on the statement to the ones in the reconcile window to locate the incorrect or missing transaction.
  12. In the Deposits section, add a check mark to the column to the left of each deposits and credit that matches the bank statement. Checking the box at the top left next to the date will check all the boxes.
    • Note: Bank statements usually have a total figure for the amount of cleared deposits and credits which should match the amount listed for the total checked amount in deposits and credits.  If it doesn't match, compare the transactions on the statement to the ones in the reconcile window to locate the incorrect or missing transaction.
  13. In the upper right section of the screen, confirm that the Difference is  0.
    • If the Difference isn't 0, confirm that the opening balance and the ending balance match the bank statement.  If you need to edit this information, select Edit Information from Statement to change the information you entered in the popup interview when you started the reconciliation.
    • For more information on what to do if the Difference still isn't 0, see troubleshooting your reconcile or select Help at the top right of the screen and then type Reconcile
  14. Once you've confirmed the difference is 0, select Finish now to print or add an adjusting transaction. 

FAQs

Below are some of the most common questions about reconcile.

Where does QuickBooks Online get the opening balance for a bank reconcile?

The opening balance comes from the bank register in QuickBooks Online and is the sum of all transactions in that bank register that have been marked as reconciled regardless of the date of the transaction. Example: a future dated check for $100 into the bank account was entered and marked as reconciled, this transaction would decrease the opening balance by $100 today.

What are adjusting transactions?

  • Adjusting entries will offset against the Opening Balance Equity account (for more information on the Opening Balance Equity account, refer to Opening Balance Equity
  • Adjusting entries will affect the current bank balance.
  • It's always better to find and correct the original error than to ask QuickBooks Online to make the adjustment unless the amount is minimal.

How do I find, print or export the reconciliation report?

  1. Select Reports from the left menu.
  2. Type Reconciliation Report in the Go to report search bar.
  3. Select the Reconciliation Report.
  4. Select the appropriate bank account from the list.
  5. From the Period ending drop-down arrow, choose the reconcile period.
  6. Select Run Report.
  7. To print: Select the print icon at the top right.
  8. Export to Excel: The Reconcile Report in QuickBooks Online is one of the few reports that can't be directly exported to Excel. Follow the steps below to manually export this data:
    1. Highlight the information on the report.
    2. Right-click and copy the information.
    3. Open Excel and right-click and paste the information.
    4. Adjust the column widths for the format of the Excel report to show all the information.
    5. Select Save.

Note: If the reconciliation was completed before September 24th, 2010, it may not show (before that date, this feature wasn't available).  Also, if you've imported your data from QuickBooks Desktop, previously memorized and saved reports won't convert.

Why does the amount on my reconciliation report not match other reports listing that account?

If you are comparing your reconciliation report to other reports within QuickBooks Online, it's important to remember a few things about how this report works:

  • This is a static report. If information within your company has changed, that change will not reflect on this report but will affect all others within QuickBooks Online.
  • The balance on this report is the balance of all the reconciled transactions, while all other reports show account balance based on posted transactions.
    • Reconciled transactions are those with the status R listed within the bank or credit card register.
    • Transactions are reported as posted the moment you save them within QBO.

Why don't I see transactions dated after the Statement Ending Date when I reconcile my register?

In the upper right of the reconcile page, there is a checkbox next to Hide transactions after the statement's end date.

If that box is checked, you will only see the transactions dated before the statement ending date you entered.  Unchecked this box to see all transactions that have not yet been reconciled.  This option will default to being checked or unchecked depending on what was selected the last time you reconciled.

Can't enter the ending balance or statement date when I start to reconcile

If you go to the reconcile screen and do not see a pop-up window asking you to enter the ending balance and the statement date, it is because a reconcile is already in progress for that account.

At the bottom left of the reconcile screen is an information box that shows the statement ending date and balance that are set for the current reconciliation. If these need to be changed, select Edit Information from Statement.

Alternately, you can reset the current reconciliation by selecting Cancel the bottom of the reconcile screen. Please be aware that this will remove the cleared status (check marks) from any transactions that have been checked in the reconcile screen.

Why isn't there a place to enter service fees, interest earned, or finance charges when I reconcile my account?

  • You'll only be prompted for this information when reconciling accounts not connected to online banking.
    • 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. 
  • If you start a reconciliation and then choose to Finish Later, when you return to the reconcile screen, the pop-window for these entries won't be displayed.

Other common questions

If you didn't see your question above, see  other common reconcile questions. 2905