With the new-look Bank Reconciliation program now available, it’s a great time to refresh your memory on how to reconcile your bank accounts.
Of course, as mentioned in our earlier blog post, the reason it’s so important to process your bank reconciliation remains the same:
“The transactions in QuickBooks Online should mirror your business bank account. This is a significant part of the process of bookkeeping. If you do not take the time to reconcile correctly, you may find that you have missed some very important transactions that are not entered or transactions that are entered twice. These errors could cause serious discrepancies in your file.”
So, let’s delve into the refreshed look and explain the new way to process your bank reconcilation. But don’t panic, it’s not all that different.
Before we begin, it’s important to note that the old look shows payments and deposits in columns on the left and right respectively (Cheques and Payments on the left and Deposits and Other Credits on the right).
The new look is more streamlined, with the payments and deposits sitting side by side. It also allows you to filter by dates, payments and deposits. All you need to do is click on the headings in the top row, as outlined below.
1. Total payments and deposits that have been selected for the bank reconciliation
2. Difference in the bank reconciliation
3. Edit info – where you can change your Ending Balance or Ending date
4. Save for Later can be selected to continue at a later time, or choose Finish now or Close without saving
5. The Filter funnel – find an amount or filter as required
6. If only Payments OR Deposits are required, select either or ALL to view all deposits and payments
7. Payment and Deposit Amounts to be selected
8. Print button
9. Settings gear icon – which allows you to choose your columns
The reconciliation page is found when clicking the Gear Icon; under Tools choose Reconcile.
Taking you to the new Reconcile an account page, you can choose your bank account, ending balance and ending date. Then select Start reconciling.
If a manual reconciliation is required
Choose the transactions that have gone through the bank statement on the right hand side, by ticking the appropriate circle icons. This will then allow your bank to reconcile. Note the $0.00 difference; this is what you’re aiming for.
If your bank account syncs with QuickBooks Online
Choose your bank account, the ending balance and ending date, and click on Start reconciling.
This will take you to the reconciliation window, which will have automatically reconciled for you.
By syncing your bank feeds with QuickBooks Online, every transaction that has been added will already be selected in the bank reconciliation window, as shown below.
View history and reports
From the reconcile window, there is the option to view History and Reports. If you select this option, you need to choose your bank account and date range before selecting View Report from the Action column.
The reconciliation report for that period will be generated, with the option to print.
Hints and tips
On the odd occasion that you don’t quite balance, make sure you check that your ending date and balance have been added correctly. It could even be down to processing something twice.
Here are some handy tips to help your reconcile if something goes wrong.
1. As you can see in the image below, the Payments & Deposits amounts should equal what is on your bank statement.
- Total Payments (debits on the bank statement) $17,944.92
- Total Deposits ( credits on the bank statement) $15,172.02
If these do not match, this is where you can filter by either credits or debits, depending on which is out to find the problem.
2. Using the Undo Button: if you are logged into a file as an accountant user and you need to undo a bank reconciliation, the undo button is now found under History and Reports > Action > Undo.
The Changes and Auto Adjustment columns are also found in the History and Reports section.
** Please note: ONLY an accountant user has access to the undo button.
3. What happens if your opening statement balances don’t match? As seen below, QuickBooks Online already recognises something has gone wrong. Click on the Let’s resolve this discrepancy.
This will take you to a Reconciliation Discrepancy Report, which will help you find the problem.
If you click on View, it will take you to the audit trail of this transaction and the culprit will be found. To fix, click Unmatch and delete the transaction. Then, navigate back to the online bank feed and rectify the transaction.
Back in the reconcile window, you now need to re-reconcile your bank account to the last date that it was reconciled, as below.
5. Before thinking of commencing the reconciliation process, make sure that all transactions from the online bank feeds window have been matched and added for the correct period.
6. Ensure you have entered the correct ending balance and date on your bank statement.
The new look Bank Reconciliation is found under the QuickBooks Labs. Just switch it on (as below) to experience the new look and feel.
To read more articles related to product updates, visit here.