Reconciling a bank statement or a bank account is a crucial step in the bookkeeping process to ensure the accuracy of your financial reports. It is an accounting task that should be carried out each month to verity your accounting data. To reconcile bank statements, you carefully match transactions on the bank statement to the transactions in your accounting records.
QuickBooks Online is # 1 in cloud accounting for small businesses1. It organizes all of your accounting data in one central location so that it's easy to perform important bookkeeping tasks such as bank reconciliation. When it's time to reconcile bank statements, your transactions are organized and easy to reconcile. With QuickBooks Online, you can easily reconcile bank accounts so that you are sure that the dollars you report are consistent with the dollars reported by the bank. Accurately track every dollar coming in and going out of your business with QuickBooks.
QuickBooks make it easy to reconcile bank statements
QuickBooks makes it easy to reconcile bank statements every month. Because you are matching transactions on the bank statement with transactions in your books to verify accuracy, you will need to disregard outstanding items that have not yet cleared the bank, such as deposits in transit that the bank has not yet credited to your account. To make it easy, QuickBooks gives you the option to hide transactions after the statement's end date so that you can quickly reconcile only the completed transactions. To make it even easier, you can also sync QuickBooks directly with your bank accounts so that your transactions are automatically entered and categorized for you.
To reconcile bank statements, go to Banking > More > Reconcile. Choose the account you want to reconcile and then enter the bank statement date, the beginning balance for that date, the ending balance as per the bank statement, and other information on the easy-to-use screen. Money going out of your account will show up on the left-hand side and deposits into your account on the right-hand side. Systematically check off the transactions one by one by clicking in each of their corresponding boxes. You can click on an individual transaction if you need more detail, and you can also sort the transactions by date, type, name, or amount. If you don't have time to complete the reconciliation all at once, you can choose Finish Later.
The bottom of the screen contains a running total of items that you have checked off, and thus they have been reconciled. This section is useful for comparing the totals in your books to the totals on your bank statement. To complete the reconciliation, make sure the difference shown at the bottom of the screen is zero and click on Finish Now. The next and final screen shows your reconciliation history and reports list. If you choose, you can run the reconciliation report and print the report for your records in just a few clicks.