QuickBooks Bank Reconciliation: A Complete Guide For 2023

QuickBooks Bank Reconciliation: A Complete Guide For 2023

quickbooks-bank-reconciliation

In this blog, we have listed simple steps to learn how to do a bank reconciliation process in QuickBooks Online. It will also help you to verify your banking activities. QuickBooks Bank Reconciliation lets you successfully reconcile transactions. After the completion of Bank Reconciliation QuickBooks, the difference between cleared balance and the ending balance should be zero.

We have listed the steps in a way that you can complete the QuickBooks Online Bank Reconciliation process. Go through the end of the blog and perform the step as directed.

What Is Bank Reconciliation In QuickBooks?

If you have entered the banking transactions into QuickBooks with the help of third-party applications or through bank feeds, you will have to reconcile them in QuickBooks. The process lets you resolve the issue of duplicate transactions. You can also reconcile your credit card, savings, and checking accounts. 

Importance Of QuickBooks Bank Reconciliation

The Bank Reconciliation process in QuickBooks ensures that the amount and number of the transactions are correct. You might encounter discrepancies between QuickBooks records and banking transactions. The bank reconciliation process also lets you catch inaccurate or fraudulent transactions. Here are the 3 main advantages-

1. Record all your bank transactions

Reconciling the bank accounts to QuickBooks lets you ensure that all the transactions listed in the bank account are in QB software.

2. Find Duplicate Transactions

Sometimes, QB software creates a transaction inadvertently. If the transaction is included in your bank account, then you can find it with the help of the bank reconciliation process. 

3. Accurate Transaction Amount

Bank reconciliation in QuickBooks ensures that the transaction amount is the same on both bank statements and QuickBooks data. In short, it ensures that the transactions exist on both data. As a result, you will be able to find it.

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Steps To Process QuickBooks Bank Reconciliation

Here are the steps to complete bank reconciliation in QuickBooks-

Step 1: Navigate To The Bank Reconciliation

Follow these steps-

  • Firstly, launch the QuickBooks Online software.
  • Choose the Accounting option from the left panel.

QuickBooks-Bank-Reconciliation

  • Then, select the Reconcile option to continue.

Step 2: Select Your Bank Account

Go through the steps listed below-

  • Choose your Bank Account from the menu.
  • Fill out the Ending Account Balance in the accounting field.

Bank-Reconciliation-QuickBooks

  • Then, enter the Date from the bank statement.
  • Fill out the Earned Interest and Service Charge details.

Step 3: Match The Transactions

Here is how to do so-

  • The reconciliation window contains a summary of cleared transactions.
  • Get the list of QB transactions for a selected period.
  • Clear the transactions by removing the duplicate entry.

QuickBooks-Bank-Reconciliation-Report

  • Click on the Radial button from the top right panel.
  • Finally, clear the period’s statement.

Step 4: Ensure That The Difference Is Zero

Follow these steps-

  • Check the Ending and Cleared balance from the window.
  • Click on the Finish Now option if the difference is zero.

QuickBooks-Online-Bank-Reconciliation

  • If the difference is other than zero, then locate the unrecorded QuickBooks transactions.
  • Fix the discrepancy.

Step 5: Save The Reports

Go through the simple instructions listed below-

  • Click on the Finish Now option.
  • You will get a confirmation link from the tab.
  • Click on the View Reconciliation Report option.

Screenshot-QuickBooks-bank-reconciliation-confirmation-message

  • Download the QuickBooks Bank Reconciliation Report.

Reconciliation-report-in-QuickBooks-Online

  • Finally, tap Done to complete the process.

Tips To Fix QuickBooks Online Bank Reconciliation Issue

Here are some troubleshooting tips for your Bank Reconciliation Issue In QuickBooks Online-

1. Verify The Beginning Balance

You can check the beginning balance in your reconciliation tab in the Summary section. It must be equal to the beginning balance of your bank statement. If you had reconciled the account the previous month, and still, the beginning balance does not match with your bank statement, then there might be a chance that your previously cleared transaction has been changed. 

The QuickBooks software provides a link on the main window where you enter a statement summary. You can use this link to find out the transaction that has been changed.

2. Check The First Bank Statement

If you are reconciling your account for the first time, then your beginning balance will be Zero. Ensure that you are using the bank statement for the first time on this account. Start from the beginning and reconcile one month at a time.

If you are unable to perform your first bank reconciliation, then call our experts and get proper assistance.

3. Review Bank Statement Details

You must double-check the interest income, service charge, and statement balance that you fill out with the help of a bank statement. If the interest income and service charge are not already mentioned in your QuickBooks software, then only enter the details during reconciliation.

4. Locate The Transaction With The Exact Difference

If there is a difference between the ending and cleared balance, then you can find out the transaction that has the same amount. You can check the transaction either on your QB transaction list or your bank statement. 

5. Match The Same Transaction Type

Your bank statement separates withdrawals and deposits on the Summary page. You can locate these details in the Reconciliation window. After that, match the total QuickBooks deposits with your bank deposits to review deposit transactions. Finally, match the withdrawals from bank statements and QuickBooks.

6. Review Unmarked Transactions In QuickBooks

Verify that all your bank statement transactions are matched with QuickBooks software. Add the missing transactions from your QuickBooks transactions by tapping the Finish Later button. Enter the normal transactions in your tab.

7. Review Unmarked Transaction In Statement

Please verify that transactions from your bank statement match with QuickBooks accounting software. You need to add missing transactions. Tap the Finish Later tab to enter transactions normally.

8. Perform Monthly Reconciliation

You can tap the Finish Later button to save the work. QuickBooks lets you resume the work from where you left off. You can make the reconciliation process more simple by doing it monthly. 

Conclusion

We hope you understand the importance of QuickBooks bank reconciliations and how to complete them in QuickBooks Online. If you are facing issues while completing the process, you can call our experts. 

MWJ Consultancy offers proper assistance for QuickBooks, TurboTax, Quicken, Sage, Xero, and other accounting software tools. Visit the official site and fill out the form to request a callback.

Frequently Asked Questions

Follow these steps to reconcile-

  • Firstly, select the Banking option from the Dashboard.
  • Choose the Reconcile option from the drop-down window.
  • Confirm your Bank Account and enter the Statement Date to proceed.
  • Then, match the Ending Balance and Beginning Balance.
  • Tap Continue to proceed further in the process.
  • After that, click the Reconcile Now tab.
  • Finally, click Done and download the report.

The undo option is only available in the QuickBooks Online Accountant version. Here is how to undo the QuickBooks reconciliation-

  • Click on the Gear icon from the top right corner.
  • After that, go to the Tools section and choose Reconcile.
  • Select the History By Account tab from the Reconcile An Account window.
  • Then, select the Account tab and click Report Period to continue.
  • Choose the Undo option from the Action section.
  • After that, tap Yes to get the Confirmation window.
  • Finally, click Undo and confirm your actions.

Here is how to do so-

  • First of all, choose the Reports option from the left Navigation panel.
  • Click on the Search bar and enter Reconciliation Report to proceed.
  • After that, choose your Reconciliation Report from the list.
  • Select your Account and enter the Report Period.
  • Then, click on the View Report option from the Action column.
  • Choose the Statement Ending Date option to proceed.
  • Open the QuickBooks Bank Reconciliation Report.
  • Finally, tap the Print icon.
QuickBooks Bank Reconciliation: A Complete Guide For 2023

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