When you begin using QuickBooks for your small business bookkeeping, you must learn how to reconcile in QuickBooks Online. You will match all of the cash flow on your bank statement with your entries in QuickBooks 2024 Online by going through the bank reconciliation process.
In QuickBooks 2024 Online, the stages for reconciliation are as follows:
- After selecting the Gear icon, select Reconcile from the Tools menu.
- To reconcile a bank account, click the Accounts drop-down box and choose the desired account.
- As shown on your bank statement, enter the ending balance and ending date.
- Compare the transactions you have entered in QuickBooks with the transactions shown on your bank statement, marking each transaction as “cleared” and using filters to help you locate transactions more quickly if necessary.
- One transaction at a time, match and check off until the Difference field displays a zero value, and you receive a “Success” signal.
- If preferred, print the reconciliation report.
- If applicable, repeat the process of account reconciliation for your credit card, savings account, and checking account.
The difference between the cleared balance and the final balance on your bank statement should be zero at the conclusion of the process.
Using QuickBooks Online to reconcile
Comprehending the methods for reconciliation utilizing QuickBooks 2024 online accounting software will expedite and simplify the bookkeeping process if you are handling it yourself. A QuickBooks accountant you choose to work with will handle bank reconciliations as part of their small company bookkeeping services.
Locate the Reconcile Page in Step 1
There are two ways to go to the Reconcile page in QuickBooks Online:
- In the left panel of the screen, click Accounting and choose Reconcile.
- After selecting the Gear icon, select Reconcile from the Tools menu.
- Two blue links can be found in the reconciliation window’s upper right corner
Past through Recount
You can see a list of previous reconciliations along with the dates they were finished by clicking on Summary.
You can view the same list with any modifications or auto-adjustments performed by QuickBooks by selecting History by Account. On this page, you can also print a reconciliation report for any earlier reconciliations.
Step 1: Choose a Profile
You’ll notice a drop-down menu listing all of your new accounts subsequent to the question “Which account do you want to reconcile?” on the Reconcile page. Touch Reconcile after selecting an account from the drop-down option. Please be mindful of that you can save your work during the reconciliation process and come back to finish it at a later time. You would then select Resume reconciling.
Step 2: Enter the details from your bank statement
Three fields are shown to you in the Reconcile window:
- starting equilibrium
- final equilibrium
- Final date
How to Reconcile Bank Statements in QuickBooks 2024
Please take a look at the statement ending date and ending balance that your bank sent you and enter them into the appropriate fields. You should be able to get your bank statement from your online banking account if you have opted to go paperless.
Before you begin reconciling your most recent bank statements, ensure that the previous month’s amount was accurately reconciled. QuickBooks Online will automatically enter the beginning balance, which should match the ending balance from the previous month. Once the details from your statement have been entered, select “Start reconciling.”
Step 3: Verify and Close Deals
The real fun starts now. As the list of transactions on your bank statement appears on your screen, go through each one individually. Verify the circle at the end of the line to see if the information matches. In addition to being noted as “Cleared,” the transaction will have its cleared amount deducted from the difference shown at the top of the page.
Use filters to make it easier to find transactions.
You can refine the transaction list in order to find transactions more quickly by:
- Status cleared (“C”)
Type of transaction Recipient
To narrow down your search even further, you can include a memo, greater than, less than, reference number, or amount in the Find field.
Step 4: Keep clearing transactions until there is no longer any “difference” field.
Proceed through the list of transactions until each one has been completed and marked as completed. The difference that is shown at this point should be zero. If the difference isn’t zero, you must determine the cause. In certain instances, it is possible that certain transactions on your statement have yet to be recorded in QuickBooks Online.
You will need to save your work and add the missing transactions if there is an issue before proceeding with the reconciliation procedure. In some scenarios, a previously reconciled transaction might have been inadvertently unchecked by you. You can click on the Edit Info tab and fix the issue dates or amounts if the bank statement information was input improperly.
Ideally, you would see the word “Success!” and all of your entries will be in order. You can now select “Finish.” You can put your work on hold and return to it later if the difference isn’t zero or if you need more time to clear every transaction in the list at once. To preserve, choose “Save for later” from the drop-down option by clicking Save for later.
Proceed to Print
You can click on View report to view and print the reconciliation report or click Done if you want to run the report later. Once all of the transactions have been cleared, the difference is zero, and you receive the “Success!” message. Recall that by selecting History by Account, you can see and print reconciliation results from earlier months.
Step 5: Carry on
Remember that you must repeat the bank reconciliation process for each of your business accounts, such as your checking account, expense account, and any other accounts connected to your QuickBooks account, even after you have completed it for one account.
In addition, certain businesses would need to reconcile other forms of income, such as interest. Think about selecting a tax expert who can provide you with guidance on all the many kinds of revenue and expenses that you must balance.
When Is It Time to Use QuickBooks 2024 to Reconcile Your Bank Accounts?
As soon as your bank statement is ready, you should perform a monthly reconciliation in QuickBooks Online to make sure that all of the transactions are there and that your QuickBooks transaction record matches the information in your bank statement. Following up on a sales receipt or missing invoice that occurred within the last thirty to thirty-one days is far simpler than tracking down a receipt for a transaction that happened months ago.
Reasons to Use QuickBooks to Reconcile Your Bank Accounts
The only way to ensure you’ve accounted for all you made and spent in the previous month and haven’t missed anything is to reconcile your bank account in QuickBooks. As you work through the reconciliation, you might find:
Your account has less money than you initially anticipated; being aware of this will help you avoid overdraft penalties and failed checks.
Fraudulent transactions have affected your company; as a result, you will need to strengthen transaction security.
In the event that you reconcile your accounts on a monthly basis and all balances line up, the QuickBooks cleansing procedure will be simple and quick. If not, you should consult an accountant to help you resolve any problems before they worsen.
Get Set, Get Reconciled!
You can now reconcile your accounts in QuickBooks Online after learning how to do so. Reconciling your bank statements in QuickBooks Online should be easy and quick if you have been meticulous in recording transactions. Everything should match up.
To get back on track with QuickBooks, schedule QuickBooks training in Jacksonville, Florida, or the closest city, and speak with a professional QuickBooks ProAdvisor if you need any more support. Have you obtained those bank statements? It’s time to make up!