When you reconcile an account, you compare the beginning balance and transactions listed in your QuickBooks Online company file with your monthly bank or credit card statements to make sure they match.
You know your bank and your 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 these steps to reconcile your accounts.
Begin with the oldest bank statement, and reconcile month-by-month up to the most recent statement. The further 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, reconciling against each statement, one after the other, in order, up to the most recent statement.
|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.|
Set up the reconciliation
- Select the Gear icon on the Toolbar.
- Under Tools, select Reconcile.
- Select Start reconciling.
- From the Account drop-down menu, select the appropriate bank account.
Depending on the type of account, different statement information fields appear.
- If the account was reconciled before, check the last statement ending date, listed beneath the Ending date field, to be sure you're reconciling the following month's statement.
- Confirm that the beginning balance on your statement matches the beginning balance on screen. If they don't match, see My reconcile opening balance is wrong. How do I make it match my statement?.
- Enter the statement Ending balance and Ending date.If you aren't prompted to enter an ending balance or statement date, you already have a reconcile in progress for that account. If necessary, you can edit the ending balance or ending date on the Reconcile page.
- Enter any additional information requested. If your statement doesn't have an amount for any of the additional fields, you can leave them blank.
For accounts connected to online banking, the Service Charge, Interest Earned,v and Finance Charge (credit cards) fields do not appear, as these entries are downloaded automatically.
- Select Start reconciling to open the Reconcile page.
You can now start comparing transactions to be sure that the information in QuickBooks Online matches the information on your bank or credit card statement.
Reconcile the account
- On the Reconcile page, compare the total number of transactions listed on screen for each transaction type to the number of transactions listed on your statement.If they don't match, see Why doesn't my QuickBooks Online account match my statement?
- If necessary, select Edit info to edit the Ending balance or Ending date from your statement.
- On your account statement, review the first transaction, and find the same transaction in the list in the Reconcile window. The screen lists All transactions, but if you have a lot of transactions to review, you can use the tabs to review only Payments or only Deposits.
- If the transaction listed on screen matches the transaction on your statement, select the checkbox next to the amount for that transaction. If the amount in QuickBooks Online is incorrect, select the transaction to open it and manually adjust the amount, then select the checkbox when corrected.
- Repeat this comparison for each transaction listed on your statement.
You can select Save for later from the drop-down menu to save your work.
- After you review all of the transactions listed, if the amount in the Difference panel is zero, select Finish now from the drop-down menu.
If the amount on the Difference panel is not zero, see Why doesn't my QuickBooks Online account match my statement? for additional troubleshooting steps.
- In the Success message, select Done, or select View report to review your Reconciliation report.
When your reconciliation is complete, you can be sure that the information in QuickBooks Online matches the information on your bank or credit card statement.
Reconciling accounts connected to online banking
Accounts connected to online banking give you additional information to help you with reconciliation.
- The Service Charge, Interest Earned, or Finance Charge (credit cards) fields are automatically populated, as this information is downloaded directly from your bank or financial institution
- The Cleared date column indicates the date a transaction cleared the bank
If a transaction did not originate from the bank, or have a match from the bank, no date is listed in the Cleared date column for that transaction
- You are automatically alerted to Transaction date or Cleared date discrepancies
- If a transaction has a manually entered transaction date that falls within the statement period, but the transaction cleared after the statement end date, it is automatically unchecked
- If a transaction has a manually-entered transaction date that falls after the statement period, but the bank indicates that the transaction cleared within the statement period, the transaction is not listed on the Reconcile page (as it falls outside the statement period), but you receive a Show Hidden Transaction alert notifying you of the transaction