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Reconcile an account in QuickBooks Online

by Intuit•117• Updated 1 week ago

Reconciling an account in QuickBooks Online involves comparing your transaction records against your bank or credit card statement to ensure accuracy. This process helps you identify discrepancies and make sure that your books are up to date.

By following these steps, you can ensure that your records match your bank or credit card statements and avoid any discrepancies or errors.





Before you begin

  • Have your monthly bank or credit card statement ready. If you are reconciling multiple months, start with your oldest statement first.
  • If your accounts are connected to online banking, make sure you have matched and categorized all downloaded transactions before you start.


Step 1: Select an account to reconcile

You can start reconciling once you have your monthly bank or credit card statement. If you need to reconcile more than one month, do them one statement at a time, starting with your oldest statement.

  1. Select the Gear icon in the upper-right corner of the screen.
  2. Select Reconcile.
  3. Select the account you want to reconcile from the Account drop-down menu.
  4. Ensure that the account you select matches the account you're reconciling on your bank or credit card statement.


Step 2: Start the reconciliation

If your accounts are connected to online banking, make sure you match and categorize all of your downloaded transactions.

Note: If you see a message about a previous reconciliation, you need to fix this before you start. Select We can help you fix it.

  1. Review the Beginning balance. Make sure the beginning balance in QuickBooks matches the one on your statement. Here's what to do if they don't match.
  2. Enter the Ending balance and Ending date as they appear on your bank or credit card statement. Some banks call the ending balance a new balance or a closing balance.
  3. If you see it, review the Last statement ending date. This is the end date of your last reconciliation. Your current bank statement should start the day after.
  4. Select Start reconciling.


Step 3: Review and match transactions

After entering the statement date and ending balance, you'll see a list of transactions that need to be reviewed and matched.

  1. In the Reconciliation window, compare the first transaction on your statement with the transactions listed in QuickBooks.
  2. If a transaction matches, select the checkbox next to it to mark it as reconciled. If a transaction in QuickBooks isn't on your statement, don't check the box.
  3. Repeat this process for all transactions on your statement.
  4. If a transaction matches but has incorrect details (like the payee), select the transaction to expand it, select Edit, and make the necessary corrections to match your statement.


Step 4: Finish the reconciliation

When all transactions are marked, the Difference should be CA $0.00.

  • If the difference is $0.00, select Finish now to complete the reconciliation.
  • If you need to stop, you can save your progress and finish later.

Troubleshooting

If the difference isn't CA $0.00, or you can't find a transaction that should be in QuickBooks, don't worry. Here's how to review and fix everything.



Step 5: Review past reconciliations

If you need to review past reconciliations, you can run a reconciliation report to review your work:

  1. Select Settings, then select Reconcile (Take me there).
  2. Select History by account.
  3. Use the drop-down menus to select the account and date range. Or, print or export your reconciliation reports if you need to share them.


Step 6: Edit completed reconciliations

You can make changes to past reconciliations, but remember changes to completed reconciliations can unbalance your accounts and other reconciliations. It also affects the beginning balance of your next reconciliation.

Start by reviewing a previous reconciliation report. If you reconciled a transaction by mistake, here's how to unreconcile it. If you adjusted a reconciliation by mistake or need to start over, reach out to your accountant. These kinds of changes get complicated.