QuickBooks Online Bank Reconciliation

Are you new to QuickBooks and want to know the complete process of QuickBooks Online Bank Reconciliation? This guide will help you a lot in knowing about QuickBooks Online Bank Reconciliation.  Reconciliation is actually a process by which transactions made by you in QuickBooks is to be matched with bank or credit card statement. It is to be done in regular intervals or at least once in a month is recommendable as soon as you download or receive bank or credit card statement. You can also connect your QuickBooks Online account with Online Bank account for the purpose of reconciliation to be perform the reconciliation work at regular intervals smoothly. It is to be noted that in the process of reconciliation transactions will get matched as recorded in bank or credit card statement when undeposited funds are used and entered properly in QuickBooks online.

Importance of QuickBooks Online Bank Reconciliation

1. Brings Accuracy in Financial Data

When you reconcile your statement at regular intervals suppose at the end of every month  then there are less chances of any error or wrong entries thus reconciliation helps you get accuracy in your financial data.

1. Makes Easy for filing taxes

Frequently reconciliation of bank transactions helps in filing the taxes easily and keeps you prepare for filing the next return without any burden. It also reduces monotonous in handling unchecked and unverified financial data. In other words reconciliation makes the data more accountable and verified for filing the taxes.

1. Monitoring Cash Flow

QuickBooks online bank reconciliation helps you know the cash spend and payment so collected for the period of time along with ready information of petty cash available with you. Hence it helps you monitoring the flow of cash in your business.

1. Smart Business Decisions

You can take smart business decisions as reconciliation helps you analyze whether your business is running on profits or on losses.

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Here are some easy steps for QuickBooks Online Bank Reconciliation

Step 1: Review your Account Beginning Balance

If you have decided to reconcile an account and you are doing it for the first time so it is essential for you to check the beginning balance of your account and ensure it to get matched with the bank statement. As it helps you track the transactions in QuickBooks with the real life bank account.

Here are some tips for you

• Once your credit card and bank get connected with online banking, your statement of bank transactions will get automatically downloaded by QuickBooks.  From the bank statement you can review the beginning balance.
• If you forgot to record opening balance somewhere in the past you can also add it later in the future in QuickBooks. But it is essential for you to enter opening balance as same as in your bank statement.

Step 2: Start Reconciling your QuickBooks online account with bank transactions

After reviewing your account beginning balance now you can start with reconciling your account with downloaded monthly bank or credit card statements. And if you are reconciling for few months together we recommend you to start with statement of oldest month first.

Before following the below steps in QuickBooks, please ensure that your downloaded transactions are categorized and organized if QuickBooks accounts are connected with online banking.

1. Settings thereafter Reconcile are to be selected in QuickBooks Online. Get Started is to be selected to continue. It is to be selected by those who are doing the reconciliation for the first time and never did before.
2. An Account is to be selected that you want to reconcile from the Account Dropdown. You need to ensure that the selected account is same as of the downloaded statement.

You may also see a message on your screen for the previous reconciliation. We can help you fix it can be selected first to fix the same before proceed further.

1. In this step you should review the beginning balance of your account and ensure to get it matched with bank or credit card opening balance.
2. Ending Balance and Ending Date are to be entered on the statement. Since ending balance of one month statement is carried forward as opening balance of next month statement therefore the bank calls ending balance as a new balance.
3. Ending date of Last Statement is to be reviewed. You need to ensure that the next month statement started with the next date to the date when you last reconcile the previous bank statement.
4. Finally, start reconcile is to be selected.

 Step 3: Comparing statement with each and every transaction

Now in the last you need to compare every transaction of QuickBooks account with your bank statement. The most important thing that you need to care is to ensure the date and amount are entered correctly.

Other steps: Recheck the transactions that were reconciled in the past

Reconciliation report can be downloaded to review the work. Below are some easy steps:

1. Navigate on to Accounting Menu and reconcile is to be selected.
2. History by account is to be selected.
3. Account and Date range are to be selected using dropdown menu.