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Intuit

Reconcile an account for multiple months or years of transactions and financial statements

If you have several months or even years of transactions in QuickBooks Desktop that have not been reconciled with your financial statements, you can reconcile them without having to do so one month at a time. If your un-reconciled transactions and statements span multiple fiscal years, the recommended method to reconcile them is one year at a time.

Using this method, all adjustments, service fees, and interest you enter during the reconciliation process will apply to the year in which those transactions occurred. However, you may wish to consult with your accountant or attorney regarding the best method for you to reconcile statements and transactions for multiple years.

Reconcile one year at a time

Before your start reconciling the account:

  • Create a back up copy of company file.
  • Select a financial statement to use for the ending balance.
    • If all the periods you need to reconcile are in the current fiscal year, select the most recent statement from your financial institution.
    • If you are reconciling prior years, select the financial statement for the last month in the oldest fiscal year you need to reconcile.
  1. Go to the Banking menu and select Reconcile.
  2. Select the Account drop-down then choose the account you want to reconcile .
  3. In the Statement Date field, choose the date from the financial statement you selected.
  4. In the Ending Balance field, enter the ending balance from your statement.
  5. Compare the amount shown in the Beginning Balance field with the opening balance on the oldest statement you need to reconcile. If the beginning balance does not match, refer to Reconcile window beginning balance is zero or incorrect.
  6. Enter the total Service Charge and Interest Earned:
    1. Add the service charges from all financial statements for the year or portion of the year you are reconciling then enter the total in the Service Charge field.
    2. Enter the statement date from the selected financial statement.
    3. Select the Account drop-down then choose the correct account for the service charges.
    4. Repeat steps 6.a through 6.c for interest earned, entering the amount in the Interest Earned field.
  7. Select Continue to open the Reconcile window.
  8. Select Hide transactions after the statement's end date in the upper right corner of the window so QuickBooks displays only the transactions dated on or before the statement date.
  9. Select the checkmark column next to each transaction that appears on the financial statement you selected.
    Note: Repeat this step for each prior statement in the period you are reconciling. When you have finished, all transactions in the window should be selected.
  10. Look at the Difference amount in the bottom right corner of the Reconcile window:
    • If the amount is 0.00, select Reconcile Now. You have reconciled the account.
    • If the amount is not 0.00, your account does not balance for the period. Choose one of these options:
      • Start again at step 4, making sure all amounts and transactions have been recorded correctly.
      • Select Reconcile Now then Enter Adjustment. QuickBooks will enter an adjustment for you to reconcile the account. Note any adjustments you make so you can review them with your accountant.
  11. (Optional) Repeat steps 1 to 10 for the next and subsequent years until the account reconciliation is up to date.