How to Reconcile Bank Accounts in QuickBooks?

Reconciliation is the process of verifying the accuracy of your financial records. This practice generally involves comparing two sets of records to ensure that the figures do match with each other. Bank Reconciliation means balancing your bank statements with your bookkeeping and making your account balances equal to one another. The aim of the bank reconciliation process is to find out if there are any differences between the two cash balances.

Reconciliation is all about matching transactions listed in your business accounting records to your corresponding bank statements. To successfully reconcile your transactions against your bank statement, the difference between the ending balance and the cleared balance should be zero. If the difference isn’t zero or if there are any discrepancies, you’ll have to recheck your accounting records. Bank reconciliations allow you to:

• Identify Accounting Errors: Bank reconciliation statements are often used to catch simple errors, duplications, and accidental discrepancies. Some mistakes could adversely affect financial reporting and tax reporting. Without reconciling, companies may pay too much or too little in taxes.

• Understand your financial health: If you are clear about the balance of your business you can make predictions, know if it is time to invest in certain things, or understand how much money you have to bill on a monthly basis to improve the bottom line at the end of each financial year.

• Track Income & Expenses: If your company has customers who still use a lot of cheques to make payments, it’s very common for them to be forgotten or misplaced. Bank reconciliation allows you to track which parts of your business are not working or are causing losses at all levels (at product level, human resources, investment in new technologies, any service you are providing that does not provide benefits because there is no demand, etc.).

• Detect Fraudulent Activity: Monthly reconciliation protects you from fraud, theft, and loss. When comparing your company’s own bank book with the transactions that your bank has on record, you will be able to spot anything that doesn’t match up. For example, if a check is altered, the payment made for that check will be larger than you anticipate. If you notice this while reconciling your bank accounts, you can take measures to halt the fraud and recover your money.

• Manage Cash Flow:  A business needs to understand the amount of money that is coming into its accounts as well as the amounts going out. This understanding is crucial both for small financial decisions, such as when to release payment to a vendor, and for bigger decisions, such as whether to pay a special dividend to shareholders. 

When to Reconcile Your Bank Accounts in QuickBooks?

Reconciliation in QuickBooks should be done on a monthly basis—as soon as your bank statement becomes available—to ensure that your QuickBooks transaction record matches your bank statement information and that no transactions are missing. It’s much easier to follow up on a missing invoice or sales receipt, manage your cash flow better and understand the actual financial position of your company. 

A monthly reconciliation helps you to spot and identify any unusual transactions that might be caused due to any fraudulent activity or accounting errors, especially if your business uses more than one bank account.

Why do you need to Reconcile Your Bank Accounts in QuickBooks?

Bank reconciliation is the process that identifies the cause of the differences between the balance of the bank movements and the accounting records. Reconciling your bank account in QuickBooks is important because it’s the only way to make sure you’ve accounted for everything you’ve spent and earned in the prior month and haven’t missed anything. 

Regularly reconciling your books is a crucial practice for ecommerce sellers. It ensures the accuracy of your financial data, helping you avoid errors that can lead to misinformed business decisions. Regular reconciliation allows you to catch discrepancies early, preventing a small mistake from becoming a major issue.

It provides a clear picture of your financial health, giving you updated insights into your income, expenses, and overall business profitability. Monthly reconciliation prepares you for tax season, maintaining accurate and up-to-date records and reducing the risk of tax errors and potential penalties.

Reconcile an Account in QuickBooks Online 

You’ll need a few items to perform bank reconciliation, including your bank statement, internal accounting records, and a record of any pending cash transactions (either inflows or outflows). This will make the reconciliation process much easier. When you reconcile your accounts, it helps you to ensure that the number and amount of your transactions are accurate. Plus, identify and address the discrepancies between your bank transactions and QuickBooks records. Below are the steps to perform a bank reconciliation in QuickBooks Online. 

Step 1: Review your Opening Balance 

It is recommended to review the opening balance if you’re reconciling an account for the first time. It needs to match the balance of your real-life bank account for the day you decided to start tracking transactions in QuickBooks.

If you’re reconciling for the First Time in QuickBooks Online 

Your accounts in QuickBooks need to match the real-life bank and credit card accounts you’re tracking. When you create a new account in QuickBooks, you pick a day to start tracking transactions. Then, you enter the balance of your real-life bank account for whatever day you choose. This amount and start date set the account’s opening balance.

Pick an easy date to start your opening balance. If you just opened a new account at your bank, use the day you opened the account. If you’ve had the account for a while, start your opening balance on the same day as the beginning of your next bank statement. Whatever date you choose, use your bank statement to get the account’s balance for that day.

Enter an Opening Balance

QuickBooks automatically downloads your historical transactions up to a certain date when you connect your bank and credit card accounts. It totals them up and enters the opening balance and date for you. If you don’t want to connect your account, you can manually enter the opening balance. Here’s how:

1. Hover over Settings and then choose a Chart of Accounts.
2. Click New, then set up your account.
3. Add the balance reflecting your bank or credit card account under the Opening balance field.

Note: Make sure you know the amount for your opening balance.

4. Select the date you want to start tracking your finances in the As of field.

Note: You can put a description in the Description field to add information about this account.

5. Press the Save button.

You can now start tracking new transactions in QuickBooks that come after the opening balance date.

Edit an Opening Balance

If you need to add transactions that are older than the opening balance, you need to edit the start date and balance. This sets a new starting point and prevents QuickBooks from counting transactions twice.

1. Navigate to Settings and then select Chart of Accounts.
2. Locate the account and click on the View register.
3. Find the opening balance entry. Tip: Sort the date column to show the oldest entries first.
4. Choose the opening balance entry.
5. After this, edit the date and then the amount. If needed, press Edit to make your changes.
6. Hit the Save tab. 

If you forgot to enter an Opening Balance in QuickBooks Online 

When you create a new account in QuickBooks Online, you select a day to start tracking transactions and enter the balance for your real-life account for that day. This starting point is the opening balance. 

If you forgot to enter an opening balance when you created an account, it’s OK. You can go back later and create a journal entry to record it. Then, you can get back to business as usual.

Step 1: Make sure you don’t already have an opening balance

Before you go further, check your account register once and check twice that you don’t already have an opening balance:

1. Head to Bookkeeping or Accounting, then choose a Chart of Accounts.
2. Locate the account and click on the View register from the Action column.
3. Now, search for an opening balance entry. Under the Payee Account column, it should say Opening Balance Equity, and in the Memo column, it should say Opening Balance.

If you notice an opening balance entry, don’t move further. Make a note of the date and amount, and use your bank statements to make sure the opening balance is correct. However, if you don’t see an opening balance, write down the date and amount of the oldest transaction in the account.

Step 2: Create a journal entry

If you are unable to see an opening balance entry, you don’t have one. You can now create a journal entry: 

1. Select + New.
2. Choose a Journal entry.
3. Write down a date that comes before the oldest transaction in the account. This will be the opening balance date.
4. After this, select the drop-down menu to choose the account you want to enter the opening balance for under the first row of the account column. 
5. Add a note in the Description field so you know what the journal entry is for.
6. On the second row of the Account column, click on the dropdown and select Opening Balance Equity.
7. Use your bank statements to enter the balance of your real-life account on the date you selected as the opening balance. You’ll need to enter both a debit and a credit to keep things accurate. Write down the debits and credits based on the type of account you entered on the first row.

• Asset (savings and checking) and expense accounts: Enter the opening balance in the Debit column in the first row and then type the same amount in the Credit column in the second row.
• Liability, equity, and income accounts: In the first row under the Credit column, enter the opening balance. Then, type the same amount in the Debit column on the second row.
• Accounts Payable: On the first row, under the Name field, choose the vendor you owe money to. Enter the opening balance as a credit to increase the balance. Or enter the opening balance as a debit to decrease the balance. Then, type the same amount in the opposite column on the second row.
• Accounts Receivable: Select the customers who owe you money under the Name field on the first row. Enter the opening balance as a debit if you want to increase the balance or enter the opening balance as a credit if you want to decrease the balance. Then, type the same amount in the opposite column on the second row.

8. When all set, press the Save and close button.

Step 3: Mark the Journal Entry as Reconciled

Even if you haven’t reconciled the account yet, you need to reconcile the journal entry. This prevents it from showing up on a future reconciliation:

1. Navigate to Bookkeeping or Accounting, then select the Chart of Accounts.
2. Locate the account and choose View Register from the Action column.
3. Search for the journal entry you just created and click on it to expand the view.
4. Hit the box in the tickmark column until you see an R. This reconciles the journal entry.

5. At last, press Save.

Now, once you’ve created a journal entry, the opening balance is reconciled in your account, and QuickBooks won’t count it in future reconciliations. 

Step 2: Start a Reconciliation

You can start reconciling once you have your monthly bank or credit card statement. If you’re reconciling multiple months, start with your oldest statement and reconcile only one statement at a time. 

1. Make sure you match and categorize all of your downloaded transactions if your accounts are connected to online banking. 
2. Navigate to Settings and then Reconcile. If you’re reconciling for the very first time, click on Get Started.
3. Choose the account you want to reconcile from the Account dropdown menu. Check if it’s the same one on your statement.

Important: If you receive a message about a previous reconciliation, select We can help you fix it. You need to fix this before you begin.

4. Review the Beginning balance and ensure the beginning balance in QuickBooks matches the one on your statement. 
5. After this, enter the Ending balance and Ending date on your statement. Some banks call the ending balance a “new balance” or a “closing balance.”
6. If you notice it, verify the Last statement ending date. This is the end date of your last reconciliation. Your current bank statement should start the day after.
7. When you’re ready to start, click on the Start reconciling option.

Step 3: Compare your Statement with QuickBooks

Now, simply compare the list of transactions on your bank statement with what’s in QuickBooks to reconcile. You can go over them one-by-one. The most important thing is being sure that you have the right dates and transactions in QuickBooks so you know everything matches.

• You’ll see all the transactions that you’ve entered into QuickBooks for the selected period on the Reconcile page. 
• Using your bank statement as a referring to your bank statement, tick mark all the transactions in QuickBooks that are listed on your statement.
• Once you’ve completed the entire process correctly, the Difference amount should be ‘0’.

Note: Transactions that have come directly from your bank account will have a green box icon next to it. You will notice a green box with a plus sign for transactions that have been automatically added to QuickBooks from your bank feed. 

Adhere to the section for the type of account you’re reconciling:

Reconcile Accounts connected to Online Banking 

Reconciling should be a breeze since all of your transaction info comes directly from your bank. In some cases, your accounts are already balanced. You can see transactions that have come directly from your bank feed and transactions that you’ve manually added to QuickBooks.

1. Begin with the first transaction on your statement. 
2. Locate the same transaction in the Reconciliation window in QuickBooks.
3. Now, compare the two transactions. If they match, put a tickmark next to the amount in QuickBooks. This marks it as reconciled. To speed things up, transactions that you added or matched from online banking are already selected for you.

4. If a transaction doesn’t display on your statement but you notice it in QuickBooks, don’t put a checkmark. 
5. Match each transaction on your statement with what’s in QuickBooks.

Tip: If you’re completely sure you’ve found a match but something small isn’t quite right, like the payee, just relax. Choose the transaction in QuickBooks to expand the view. Then press Edit and make edits so the details match your statement.

6. At the end, make sure the difference between your statement and QuickBooks should be $0.00. If it is, click on Finish now.

Reconcile accounts that aren’t connected to Online Banking 

Unable to connect to online banking? No problem. Here’s what to do:

1. Start with the first transaction on your statement.
2. Look for the same transaction in the Reconciliation window in QuickBooks.
3. After this, do compare the two transactions. If they match, put a checkmark beside the amount in QuickBooks. This marks it as reconciled.
4. Don’t put a checkmark if a transaction doesn’t display on your statement but you notice it in QuickBooks.
5. Match each transaction on your statement with what’s in QuickBooks.

Tip: If you’re absolutely sure you’ve found a match but something small isn’t quite right, like the payee, don’t worry. Select the transaction in QuickBooks to expand the view. Then click Edit and make edits so the details match your statement.

6. Once done, check if the difference between your statement and QuickBooks should be $0.00. If it is, press Finish now.

Step 4: Finish the Reconciliation

Once you’ve reviewed and matched all the transactions, QuickBooks will calculate the difference between your records and your bank or credit card statement. If the difference is zero, you’ve successfully reconciled your account. If the difference is not zero, you may need to review your transactions again to find any discrepancies. 

When you reach the end of your transactions, the difference between your statement and QuickBooks should be CA $0.00. If it is, click on Finish now. However, if the difference isn’t CA $0.00, or you can’t find a transaction that should be in QuickBooks, don’t worry. Here are a few things you can do:

• Verify if the dates entered for each transaction in QuickBooks match the dates for each transaction in your bank statement. 
• If there are any missing QuickBooks transactions:
• Select + New.
• Add the transactions you need.
• If there are more QuickBooks transactions:
• Choose the Cleared date to show all the transactions that have been manually added into QuickBooks. This is where you will normally find discrepancies in your reconciliation. You can even use the audit log to help you when editing or deleting transactions.
• If the total number of transactions matches:
• Ensure that the amount of each QuickBooks transaction matches the amount of each transaction in your bank statement.

Once the difference is $0, you’ve completed the reconciliation process successfully. You can also save your progress and finish later if required. 

Step 5: Review Past Reconciliations

If you want to review past reconciliations, you can run a reconciliation report to review your work:

1. Navigate to Settings and then choose Reconcile.
2. Click on History by account.
3. Use the drop-down menus to select the account and date range. Or, you can print or export your reconciliation reports if you need to share them.

Step 6: Edit Completed Reconciliations

You can make changes to past reconciliations, but you need to be very careful. These changes can unbalance your accounts and other reconciliations. It also affects the beginning balance of your next reconciliation. To do this, you can start by reviewing a previous reconciliation report. If you reconciled a transaction by mistake, you have the option to unreconciled it. However, if you adjusted a reconciliation by mistake or need to start over, reach out to your accountant. These kinds of changes may get so complicated.

Reconcile an Account in QuickBooks Desktop

Just like balancing your checkbook, you are required to review your accounts in QuickBooks to make sure they match your real-life bank and credit card statements. This process is called reconciling.

It’s recommended to reconcile your checking, savings, and credit card accounts every month. Plus, compare the list of transactions with what you entered into QuickBooks as soon as you get your bank statements. If everything matches, you know your accounts are balanced and accurate. Here’s how to reconcile your accounts so they match your bank and credit card statements.

Step 1: Review your Opening Balance

Before you start with reconciliation, make sure to back up your company file. 

If you’re reconciling an account for the first time, you are recommended to review the opening balance. 

Enter an Opening Balance for accounts in QuickBooks Desktop 

As soon as you create a new account in QuickBooks Desktop, choose a date to start tracking all of your transactions. You have to enter the balance of your real-life bank account for the day you pick. This way, QuickBooks matches your bank records from the start. 

This starting point is known as the account opening balance. It summarizes all the past transactions that came before it. Below we’ve discussed how to enter an opening balance for accounts you create in QuickBooks.Follow the steps for the type of account the opening balance is for:

Bank or Credit Card Accounts

Before you create a new account on your QuickBooks Chart of Accounts, ensure you know what to enter for your opening balance. You can enter an opening balance for a real-life bank account you just created, or one you’ve had for a while. Here’s how:

1. Get your bank statements or sign in to your Bank’s website.
2. Navigate to the Company menu in QuickBooks Desktop and then choose the Chart of Accounts.
3. Hit a right-click anywhere on your Chart of Accounts and then press New.
4. After this, select the Bank or Credit Card for the account type. Then, hit the Continue tab.

5. Provide a name to your account. If you have multiple accounts of the same type or at the same bank, give them unique names so they’re easy to tell apart.
6. Now, fill out the rest of the data fields.
7. Click Enter Opening Balance. Later on, if you need to edit your opening balance, the button will be Change Opening Balance. 

8. What to enter as the opening balance depends on how you want to handle your previous transactions:

• If you don’t plan to enter older transactions that come before the opening balance date in QuickBooks: Enter the ending balance and ending date from your most recent bank statement. Then press OK. This summarizes all of your past transactions. After this, you’ll start tracking new transactions going forward.
• If you want to enter your previous transactions in detail: Decide how far back you want to go. Select a date that’s older than the oldest transaction you want to track in QuickBooks. Your opening balance describes everything before the date you pick. Enter the date you selected in the Ending date field. Under the Ending balance field, write down the balance of your real-life account for that date. Then, hit the OK tab. This method prevents you from counting past transactions twice.

9. Once you’re done, click on Save & Close to record the Opening Balance.

Asset, liability, and other types of Accounts

You can simply enter an opening balance for a real-life bank account you just created or one you’ve had for a while. Be careful when entering the opening balances for accounts on your Balance Sheet. This may include Fixed Asset, Equity, Long-term Liability, Other Assets, Other Current Asset, and Other Current Liability accounts. Here are the steps to be followed:

1. Get your bank statements or sign in to your bank’s official website.
2. Navigate to the Company menu in QuickBooks Desktop and then choose the Chart of Accounts.
3. Hit right-click anywhere on your Chart of Accounts and Press New.
4. After this, select Fixed Asset, Loan, or Equity. For other types of accounts, click on the Other Account Types drop-down and one of the types. Then, hit the Continue tab.

5. Provide a name to your account. If you have multiple accounts of the same type or at the same bank, give them unique names so it’s easy to set them apart. 
6. Now, fill out the rest of the data fields.
7. Choose Enter Opening Balance. Later on, if you need to edit your opening balance, the button will be Change Opening Balance. 
8. What you enter for the opening balance depends on how you want to handle your previous transactions:

• If you don’t plan to enter older transactions that come before the opening balance date in QuickBooks: Enter the ending balance and ending date from your most recent bank statement. Then press the OK button. This summarizes all of your past transactions, and you’ll start tracking new transactions going forward.
• If you want to enter your past transactions in detail: Determine how far back you want to go. Select a date that’s older than the oldest transaction you need to track in QuickBooks. Your opening balance describes everything before the date you pick. Enter the date you picked in the Ending date field. Under the Ending balance field, enter the balance of your real-life account for that date. Then click OK. This method prevents you from counting past transactions twice.

9. Once done, press Save & Close to record the opening balance.

Check the Opening Balance Entry 

Once done with entering the opening balance, navigate to your account register and make sure it’s accurate. The Opening Balance Equity account shouldn’t have a remaining balance.

1. Go to the Lists menu and choose the Chart of Accounts.
2. Now, look for and open the Opening Balance Equity account.
3. Review the account balance. It should be 0.00. 

If the balance isn’t 0.00, don’t be anxious. Write down the remaining balance and then run a Balance Sheet Report for last year.

1. Navigate to Reports and hover over Company & Financial.
2. Choose the Balance Sheet Standard option. 
3. Now, select Last Fiscal Year from the Dates dropdown.
4. Under the Equity section, check the Retained Earnings balance.
5. After this, do compare last year’s Retained Earnings balance with the remaining balance in the Opening Balance Equity account.
6. If they match, you’re good to go. Everything is balanced. 
7. However, if they don’t match, reach out to your accountant. They know how to get your accounts back in balance. 

Step 2: Prepare for the Reconciliation

Be sure you enter all transactions for the bank statement period you plan to reconcile. If there are transactions that haven’t cleared your bank yet and aren’t on your statement, just wait to enter them. 

Step 3: Start Your Reconciliation

When you get your bank statement, you can simply start reconciling. If you’re reconciling multiple months, start with your oldest bank statement. Reconcile each month separately, only one statement at a time. 

Important: If you’re reconciling a Merchant or Payments account and QuickBooks Desktop notices that you aren’t signed in, you’ll see a sign-in window. This ensures your account is successfully linked to a valid company ID. 

1. Navigate to the Banking menu and then choose the Reconcile option. 
2. Select the bank or credit card account you want to reconcile under the Account field.
3. The Statement Date is automatically filled in. Usually, it’s 30 or 31 days after the statement date of the previous reconciliation. You are required to change it as needed to match your bank statement.
4. QuickBooks also automatically enters the Beginning Balance. The software uses the ending balance from your last reconciliation to get this number.
5. After this, write down the Ending Balance based on your bank statement.
6. Enter the Service Charge and Interest Earned based on your bank statement. Don’t type charges you’ve already entered in QuickBooks.
7. At last, review the fields. If the info is accurate, hit Continue and press OK.

If your beginning balance doesn’t match your statement, don’t worry. There are a few tools that can help you.

• If the numbers don’t match, choose Locate Discrepancies. This gives you reports you can use to identify discrepancies and other reconciliation issues.
• If you still have issues, here’s how to fix your opening balance and beginning balance.
• If you want to start over from scratch, you can click on Undo Last Reconciliation.

Note: As soon as you undo a previous reconciliation, your beginning balance reverts to the beginning balance of your past reconciliation. All cleared transactions on the reconciliation become uncleared.

Step 4: Compare Your Bank Statement with QuickBooks

You are recommended to compare the list of your transactions on your bank statement with what’s in QuickBooks for a better reconciliation. Make sure you have the right dates and transactions. When you’re done reviewing your statement, you’ll know everything made it into QuickBooks.

Before starting the Reconciliation

Here are a few things you can do to make your reconciliation easier or smoother. 

1. Choose Hide transactions after the statement’s end date if you only want to see transactions for the statement period you’re working on
2. If you’re reconciling a credit card account, sections like Charges and Cash Advances (purchases) and Payments and Credits (payments to the credit card company) must be focused on only one section at a time.
3. Click on Matched if you’re reconciling an account for online banking. Then, enter the Statement Ending Date from your bank statement. This automatically selects transactions QuickBooks downloaded and matched.

Note: A matched transaction in the register has a lightning bolt besides it. A checkmark replaces the lightning bolt once you reconcile it.

4. Opt for the header or title of a column if you want to sort the list.
5. If there are more transactions in QuickBooks as compared to your bank statement, resort to the list.

Match your Transactions

1. Once you’re ready, begin with the first transaction on your bank statement.
2. Now, locate the same one under the Reconciliation window in QuickBooks.
3. After this, compare the two transactions. If the transactions do match, select and give a tickmark in the checkmark column. This reconciles the transaction.
4. Compare each transaction on your statement with what’s in QuickBooks so you can clear or add transactions to the reconciliation, the Cleared Balance amount decreases. However, the amount can increase if you clear or add deposits and other credit amounts.

Note: If a transaction doesn’t appear on your statement, don’t mark it as reconciled. Below are some quick ways to verify if things are matching:

• Search for the Items you’ve marked in the cleared section if you want to see the total number and amount of transactions you’ve added to the reconciliation. Several banks provide the same summary of transactions on bank statements. You need to compare the total number of transactions to see if anything is missing.
• If you want to edit or get more info about a specific transaction, choose the transaction, then Go To or click twice.
• If you need to take a step back and make a change to the info you entered in Step 3: Start your Reconciliation, click on Modify. The service charges, interest, and ending balance info are displayed in the section next to it.

5. At last, the difference between your bank statement and QuickBooks should be $0.00. If it is, press Reconcile now.

What to do if Balances don’t match at the end? 

If the difference between your bank statements and QuickBooks isn’t $0.00 then don’t worry. QuickBooks gives you several ways to fix it.

For bank accounts, QuickBooks opens the Reconcile Adjustment window. You have a few options:

• Return to Reconcile: Go back to the reconciliation so you can review everything again.
• Leave Reconcile: Save the reconciliation so you can review or edit any existing transactions causing issues. You can come back and complete the reconciliation after some time.
• Enter Adjustment: If you want to finalize the reconciliation, you can force QuickBooks to create an adjustment to balance everything. You can only do this if you know all of the correct transactions are in QuickBooks and what you entered is accurate. QuickBooks will automatically enter the adjustment as a journal entry.

The journal entry goes into a special expense account called Reconciliation Discrepancies.

Review the Reconciliation Adjustment

To see all of your adjustments on the list, you can review a Previous Reconciliation report for the reconciliation you adjusted. This will show you cleared transactions and any changes made after the transaction that may not show in your discrepancies.

1. Head to the Edit menu and then choose Find.
2. Now, hit the Advanced tab, then Memo under the Find window.
3. In the Memo field, type Balance Adjustment, then click on Find.

Review Cleared Transactions

Here’s how you can review all of your cleared transactions.

1. Navigate to the Reports menu and then click on Reports Center.
2. Locate and open the Previous Reconciliation report.
3. After this, choose the account you reconciled and then select either Detail, Summary, or Both.
4. Select Transactions cleared, plus any changes made to those transactions since the reconciliation.
5. Hit the Display tab. 

For other types of accounts, QuickBooks opens the Make Payment window. This allows you to write a check or enter a bill to pay to cover the outstanding balance. If you don’t want to record a payment, press Cancel.

Review the Reconciliation

Once you reconcile, you can select Display to view the Reconciliation report or Print to print it. Now, you’re ready to go. 

If you need to review a reconciliation report later on, do the following:

1. Hover over the Reports menu and then select Reports Center.
2. Now, search and open a Previous Reconciliation report.
3. Opt for the account you reconciled, then click on either Detail, Summary, or Both.

Conclusion:

Reconciling your accounts or bank statements simply means comparing your internal financial records against the records provided to you by your bank. For small businesses, the main purpose of reconciling your bank account is to ensure that the actual money spent or earned matches the money leaving or entering an account at the end of a fiscal period. It also helps you to manage your cash flow and identify any duplicate or missing transactions caused by fraud or accounting errors.

FAQs:

How do I edit and update my reconciliation report in QuickBooks?

Undoing a reconciliation is only possible in QuickBooks Online Accountant (QBOA). Since you’re using QuickBooks Online (QBO), you’ll need to invite your accountant to handle this for you. Here’s how to do it:

Step 1: Invite Your Accountant

1. Log in to QuickBooks Online as the primary admin.
2. Go to Settings (Gear icon ⚙) and select Manage Users.
3. Click on the Accountants tab.
4. Enter your accountant’s email address and click Invite.

Step 2: Let Your Accountant Undo the Reconciliation

Once your accountant accepts the invitation, they can undo the reconciliation for you. They will:

1. Log in to their QuickBooks Online Accountant account and access your company.
2. Go to the Accounting tab and select Reconcile.
3. Click History by account.
4. Find the affected account and choose the reconciliation.
5. Click Undo and confirm by selecting Yes when prompted.

Step 3: Resume Reconciliation

After the reconciliation is undone, you or your accountant can restart the reconciliation process by clicking Resume reconciling. This allows you to make updates or corrections. This method ensures you get accurate, up-to-date financial records.

Disclaimer: The information outlined above for “How to Reconcile Bank Accounts in QuickBooks?” is applicable to all supported versions, including QuickBooks Desktop Pro, Premier, Accountant, and Enterprise. It is designed to work with operating systems such as Windows 7, 10, and 11, as well as macOS.