Reconciling your Quickbooks Online Account

This is for clients who are using Quickbooks Online or Desktop and not Self-Employed.

Reconciling your bank account in QuickBooks Online involves comparing your bank statement to the transactions recorded in QuickBooks to ensure they match and to identify any discrepancies. Here is a step-by-step guide on how to reconcile your bank account in QuickBooks Online:

1. Go to the Banking menu and select Reconcile.

2. Select the bank account you want to reconcile.

3. Enter the statement ending date and the ending balance from your bank statement.

4. QuickBooks will display all of the transactions that have been recorded for that account since the last reconciliation.

5. Compare the transactions in QuickBooks to those on your bank statement. If there are any discrepancies, make any necessary adjustments in QuickBooks.

6. Mark each transaction as cleared or reconciled as you match them to the bank statement.

7. Once you have matched all of the transactions, QuickBooks will calculate the difference between the ending balance in QuickBooks and the ending balance on your bank statement.

8. If the difference is zero, then the reconciliation is complete and you can click on the "Finish now" button.

9. If there is a difference, you'll need to review your work to find the cause of the difference and make any necessary adjustments.

For example, Let's say that you have a bank account named "Checking Account" and you have recorded some transactions for the month of january. At the end of the month, you received a bank statement with the ending balance $1000. Now you have to reconcile your account by following the above steps.

1. Go to the Banking menu and select Reconcile.

2. Select the Checking Account you want to reconcile.

3. Enter the statement ending date (e.g. January 31) and the ending balance (e.g. $1000) from your bank statement.

4. QuickBooks will display all of the transactions that have been recorded for that account since the last reconciliation.

5. Compare the transactions in QuickBooks to those on your bank statement and make necessary adjustments.

6. Mark each transaction as cleared or reconciled as you match them to the bank statement.

7. Once you have matched all of the transactions, QuickBooks will calculate the difference between the ending balance in QuickBooks and the ending balance on your bank statement.

8. If the difference is zero, then the reconciliation is complete and you can click on the "Finish now" button.

It's important to reconcile your bank account regularly to ensure that your financial records are accurate and to identify any errors or discrepancies in a timely manner.