Learn about bank account reconciliation and how it helps keep your QuickBooks accounts accurate.
Just like balancing your chequebook, you need to review your bank and credit card accounts in QuickBooks to make sure they match your real-life bank accounts. This is called “reconciling.”
Learn how it works
When you reconcile, you compare your bank statement to what’s in QuickBooks for a specific period of time. Your task is to make sure everything matches. At the end, the difference between QuickBooks and your bank accounts should be $0.00, although processing payments can sometimes cause a small gap.
Learn when to reconcile
It’s a good idea to reconcile QuickBooks every month. You’ll learn more about your business each time, and rest easy knowing your info in QuickBooks is 100% accurate. Reconciliations also help you:
- Know your business' net worth in real time.
- Catch matching or accounting errors (which makes tax time much easier).
- Have better conversations with your accountant.