Are you seeking to reconcile your transaction accounts in QuickBooks? The method of comparing payments in QuickBooks against your bank or credit card reports is to reconcile in QuickBooks. Regular account reconciliation, the method by which you align your purchases in QuickBooks Online (QBO) with your bank balance and credit card records, is a vital piece of good accounting.
In addition to being as enjoyable as it sounds, it’s a very beneficial process to ensure that your bank statements fit your accounting scheme, and based on what’s already in the bank, you’re not at risk of excessive spending. It’s a similar method to your checkbook management.
Why Do my Bank Accounts Need to be Reconciled?
We’ve already recognized that, for spending purposes, it’s important to ensure that your bank and credit card statements match what’s in QBO, and it’s not difficult to understand why. Say you’re trying to make a large decision and your card is rejected, fresh laptops for your tech startup team. The last document you checked indicated enough capital available, but the information was wrong.
Keeping track of your accounting and constantly reconciling your accounts often helps protect you, as you’ll easily know whether or not your bank or credit card details have been used to make any fraudulent transactions.
Useful Terms For Account Reconciliation in QuickBooks
You’ll want to understand specifically what we’re talking about here, so getting to know a few key terms is useful.
- Starting balance-at the starting of a new month or accounting period is the amount of cash (available in your bank account or due for credit card accounts).
- Starting day-the date on which a new fiscal period/statement month starts.
- Ending balance-the amount of cash available for credit card accounts in your bank account or due at the end of a month or financial cycle.
- End date-the last date of the previous financial year/month of declaration.
How can I Reconcile my QuickBooks Transactions?
It’s fairly easy, and here’s how you can do it. Note: under the presumption that your bank and credit card statements are already linked to QBO, these measures are listed out. Here’s a step-by-step tutorial if you need help linking your accounts.
- You will need valuable information that is mentioned on your bank statement, so ensure that the bank you are reconciling has it accessible for you.
- Proceed to your notification center and pick the tab for Accounting. Then, before going on to the others, pick one of your accounts to examine.
- In the columns that show, you’ll be asked to insert the end balance and date. These can be seen on your financial records, and when they show, you may want to add them.
- Check each line of the account to ensure the bank statement suits specific amounts and the cumulative numbers.
- You can see a $0 difference registered by your QBO account when all is right and aligns.
- For the rest of your related accounts, repeat the process.
Can’t Reconcile Your Accounts in QuickBooks?
If you somehow do not have a $0 balance after you’ve finished your account reconciliation, don’t worry. The most common reasons for having trouble to reconcile in QuickBooks are:
- Bank service fees.
- Checks that have not yet cleared your bank but are already recorded in QBO.
- Transactions that you have entered but have not yet cleared your bank.
- Transactions that have been posted to the bank but are not registered in QuickBooks.
Not to sound like a mom’s guilt trip, but this kind of QuickBooks Reconciliation discrepancy can be prevented by periodically reconciling your accounts, particularly because if you look back more than a few months, it’s difficult to remember transaction information!
In Conclusion:
The process to reconcile in QuickBooks is not a complicated one. If any user still faces any trouble in reconciling your bank accounts in QuickBooks, you can seek help from QuickBooks Support executives on this number: +1- 860- 544- 6044.
