For businesses, especially those leveraging QuickBooks, mastering bank reconciliation is not just a matter of good practice it's essential for maintaining financial health and compliance. QuickBooks, with its user-friendly interface and powerful functionalities, streamlines the bank reconciliation process, enabling businesses to reconcile accounts efficiently and accurately.
In this comprehensive guide, we delve into bank reconciliation within QuickBooks, exploring the tools, techniques, and best practices that will empower users to reconcile their accounts with confidence. Whether you're a seasoned accountant or a small business owner managing your finances, this guide will provide valuable insights and actionable steps to streamline your reconciliation process and ensure financial accuracy.
Follow the Steps to Process the Bank Reconciliation in QuickBooks Desktop
- Hit the first click on the Gear icon and then choose “Reconcile”.
- Then, choose the account that you want to reconcile from the list menu.
- Now, you have to enter the ending balance or ending date.
Note: If the account was reconciled then you have to view the Ending date at the last statement ending date must be sure that you are reconciling the following month’s statement.
- Hit the click on the “Start Reconciling” button.
- Go to your reconciling page and you will view all transactions that you have entered into your QuickBooks Desktop for the specific period.
- Utilize the Bank statement as the resource to tick off all transactions.
- Once you finish this process accurately, then the difference amount should be zero.
How to Bank Reconciliation in QuickBooks Online
Follow the below steps to reconcile in QuickBooks online:
- First, need to log into QuickBooks Online.
- Click on the Gear icon and choose the “Tool” menu.
- Then, select the “Reconcile” button.
- Go to the Accounts and click on it.
- All options will appear on your screen, then choose the specified account that you require to reconcile.
- Now, enter the “Ending balance” and “Ending Date” based on the bank statement details.
- Then, you just need to match the transactions with the bank statement.
- After this, you have to check them off step-by-step.
- Make sure you apply filters to make it easy to find the transactions.
- Perform the above steps repeatedly until the Difference field is zero.
How to Reconcile Bank Statements in QuickBooks
- Go to your Bank statement then view all transactions step-by-step.
- Open the Bank reconciliation window and then locate the same transaction.
- Check the circle which is just next to that transaction.
- This transaction is marked as “Cleared” in the bank reconciliation section.
- Agree with on-screen guidelines and then choose all the transactions, the difference should be zero.
- Hit the “Finish Now” button and you are done with the reconciliation.
- You have the choice to check the reconciliation report.
- View the reconciliation report and then choose the View Report option.
