Performing monthly bank reconciliations is a great way to stay on top of your books and ensure every transaction is recorded. It is also an important step in preparing for your financial statements or tax return. Utilizing tools in QuickBooks Online makes this process as seamless as possible.
Ready to reconcile your bank account like a pro? Follow these steps:
- If your bank account is linked to QuickBooks Online, go to the banking screen and ensure all transactions for the month have been matched, added, or excluded as applicable
- Obtain a copy of the bank statement for the account that you want to reconcile
- In your QBO, navigate to “Accounting” then “Reconcile” if you are in accountant view. If you are using business view, select “Bookkeeping” then “Reconcile”
- Select the bank account from the dropdown menu. Once it is selected, the most recent statement date that has been reconciled will be displayed in blue
- Double check that the beginning balance matches the bank statement
- Enter the ending balance and ending date from the bank statement
- Record any service charges or interest earned
- Note: if you forget to enter these at the beginning, you can go to “edit info” from the reconcile screen to add these at any point during your reconciliation
- Select “Start Reconciling”
- Select transactions to clear them as they appear on the bank statement
- Note: If you’ve added transactions from the bank feed, all transactions in this screen should be automatically selected
- While reviewing your transactions, keep an eye out for anything that looks strange, such as duplicates or outstanding transactions from months prior. If you are unsure how to handle a transaction issue, reach out to our W&H team!
- Once you have marked all transactions matching the bank statement as cleared, the cleared balance should match the bank statement ending balance and show a zero difference. If this is the case, you can select “Reconcile Now”
The above steps can be utilized to reconcile all of your checking, savings, and other bank accounts. You can also reconcile your credit cards in QuickBooks to verify that the balances are accurate. If you have any questions on this or anything else QuickBooks related, please give us a call at 419-289-7007 and our team of QuickBooks ProAdvisors would be happy to assist you.