At its core, reconciliation is about accuracy and consistency. If you’re reconciling an account for the first time, review the opening balance. It needs to match the balance of your real-life bank account for the day you decided to start tracking transactions in QuickBooks. After completing the reconciliation, QuickBooks will generate a reconciliation report. This report provides a detailed record of the transactions you reconciled.

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If you reconciled a transaction by mistake, here’s how to unreconcile it. If you adjusted a reconciliation by mistake or need to start over, reach out to your accountant. You can start reconciling once you have your monthly bank or credit card statement. If you need to reconcile more than one month, do them one statement at a time, starting with your oldest statement.

1. You can also mark transactions as cleared or add new transactions that may be missing.
2. Just like balancing your checkbook, you need to review your accounts in QuickBooks to make sure they match your bank and credit card statements.
3. If you adjusted a reconciliation by mistake or need to start over, reach out to your accountant.

In this article, we’ll provide step-by-step instructions on how to reconcile an account in QuickBooks Online. Rest assured that your QuickBooks and bank statements align perfectly, giving you peace of mind when closing your books. Remember, reconciliation is not a one-time process but an ongoing practice that you should do at least once a month.

How to Reconcile an Account in QuickBooks Online

Select Start Reconciling and carefully match each transaction in QuickBooks to your bank or credit card statement. Check off each transaction in QuickBooks that matches your statement. The information you entered from the account statement appears at the top of the page. After all transactions are found and marked as “cleared,” the “Difference” shown in the upper-right corner of the window should be zero.

Step 4: Enter statement details

The tricky part is making sure you have the right dates and transactions in QuickBooks so you know everything matches. Neglecting the practice of regular reconciliation can expose your business to several risks. Business owners use reconciliation to uncover errors or discrepancies that might have occurred during data entry or transaction recording. These discrepancies might be due to double entries, fraud, human error, or other factors. QuickBooks Online vs. QuickBooks Desktop allows you to access your financial data from any device. It’s best suited for ecommerce and web-based businesses that need seamless accounting integration.

Reconcile an Account in QuickBooks Online: Overview

By default, the list of transactions hides transactions that occur after the statement’s end date. To apply filters to the transaction list, click the “Filter” drop-down button in the upper-left corner of the transaction list to select from filtering choices in the drop-down menu. Then click the “Apply” button in the drop-down menu to apply the filters you selected. You can remove applied filters by clicking the “X” button to the left of the applied filter’s name or by clicking the “Clear filter / View all” link. In the “Reconcile” page, to select the account to reconcile, choose it from the “Account” drop-down.

If there are any discrepancies between your bank statement and QuickBooks, resolve them by either adding missing utility deposits transactions or correcting erroneous ones in QuickBooks. Follow these steps to reconcile your accounts using QuickBooks Online. The month-end closing process can seem tedious and daunting to many small business owners. Thankfully, learning how to reconcile in QuickBooks Online to close your books can help ease that burden.

You can also confirm you reconciled a transaction by running a reconciliation report and finding the transaction in question. Just like balancing your checkbook, you need to review your accounts in QuickBooks to make sure they match your bank and credit card statements. After completing an account reconciliation, a reconciliation report becomes available. In the “You reconciled this account” window that appears, you can click the “View reconciliation report” link to view the report. Otherwise, click the “Done” button in this window to close it.