Reconciliation is a process of matching transactions that a user has entered in QuickBooks with the bank statements. It is required to review your accounts in QuickBooks to ensure that the bank and credit card statements are matched. This process is known as reconciling. You are advised to reconcile your savings, checking, and credit card accounts every month. Once you get the bank statements, you have to compare the list of transactions with transactions that have been added into QuickBooks.
In this blog, we are going to discuss the steps of how to reconcile in QuickBooks desktop.
If you get stuck while attempting any of the steps written below, then feel free to get in touch with our team at QuickBooks Support.
How to reconcile bank account in QuickBooks Desktop?
Listed below are the steps to reconcile in QuickBooks. You need to follow all the steps in order:
Step 1: Evaluation of the opening balance
First, you require to back up the company file. After that, you have to review the opening balance only if you are reconciling for the first time. It is necessary to match the balance of your bank account for the day you have chosen to start tracking the account.
Step 2: Preparation before reconciliation
You need to make sure that you have added all transactions that you have to reconcile. You are advised to wait for transactions that have not been cleared by the bank yet. Once cleared by the bank, then you can enter all those transactions.
You May Also Read – How to Reconcile your bank in QuickBooks Online?
Step 3: Initiate reconciliation
If you want to reconcile multiple months, then you have to start with your oldest bank statement. Each month should reconcile separately.
- First of all, you have to go to the Banking menu, then choose Reconcile.
- Choose the bank or credit card account that you have to reconcile in the Account filed.
- Now, the statement date will be filled automatically. Generally, it will fill the date based on 30 or 31 days after the statement date that you have entered for the previous reconciliation.
- After that, you don’t need to fill the Beginning Balance. Since it will fill automatically by using the ending balance from your last reconciliation. You need to ensure that it matches the beginning balance on the bank statement.
- Now you are required to enter the ending balance in the Ending Balance field.
- If the bank statement displays an interest or service charge that has not been entered into QuickBooks, then enter the amounts in the Interest Earned and Service Charge section. You don’t need to enter charges that have been already recorded in QuickBooks.
- At last, you need to make sure that all transactions are correct and choose Continue to start the process of reconciliation.
If you are not able to match your statement, then do not need to worry. You can use tools in such cases.
In order to track the differences, you need to choose Locate Discrepancies. By doing so, you will get the reports which will assist you in searching the differences between your bank statement and QuickBooks.
Note: In order to change the date of the opening balance of your bank account, you have to undo a previous reconciliation. By doing so, the beginning balance will show the beginning balance of the reconciliation. Along with this, all cleared transactions become unclear on the reconciliation.
If you are wondering of how to reconcile bank account in QuickBooks desktop 2018, then follow the same aforementioned steps.
Step 4: Match the bank statement with QuickBooks
You have to compare your bank statements with all the information recorded into QuickBooks. The difficult thing is to make sure that you have entered the right dates and transactions. If a transaction is not displaying on your statement, then this indicates that the transaction is not reconciled. Follow the steps written below to make reconciling easier.
Consider the following points before matching the bank statements with QB:
- Choose Hide transactions after the statement’s end date only if you need to view transactions for the statement period.
- You will have two sections for bank account transactions. The first one is checks and Payments (money out) and the second one is Deposits and other Credits (money in). If you need to reconcile a credit card account, then the sections will be Charges and Cash Advances (purchases) and Payments and Credits (payments to the credit card company).
Now, you have to follow the points written below to match the bank statement with QuickBooks:
- Intimate with the first transaction of your bank statement. And, search for a similar transaction in the Reconciliation window.
- Now, you have to compare both transactions. If they match, tick them in the checkmark column.
- In order to sort the list, you need to choose the header of a column.
Note: You require to resort the list if there will be more transactions in QB transactions. By doing so, you will be able to search transactions with a reference or with a specific amount become easier.
- When you clear or add transactions to the reconciliation, then the amount of Cleared Balance starts diminishing. While clearing or adding deposits and other credit amounts, the amount increases.
In the end, the difference between QuickBooks and the bank statement should be $0.00. If so, choose Reconcile now to finish the reconciliation.
Steps to view the reconciliation report
- You need to choose Display in order to view the Reconciliation report.
- After that click on Print if you want to print the reconciliation report.
- If you do not want to view or print the reconciliation report, then shut down the window.
Later on, if you require to review the report, then select Reports Center in the Reports menu. Now, you have to search and open the Previous Reconciliation report. Choose the account that has been reconciled recently and after that choose either Summary, Detail or Both.
Important note: Are you are using QuickBooks desktop 2017 or 2018?
The steps of how to reconcile in QuickBooks desktop 2017 and how to reconcile in QuickBooks desktop 2018 are similar to the above-mentioned steps.
Hopefully, you have understood the process of “How to reconcile in QuickBooks Desktop”? The above blog all aspects related to the same. If you still have any further queries, then you are free to get in touch with us by dialing our QuickBooks 24/7 Support Phone Number 1-855-857-0824.