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Intuit

Reconcile an account in QuickBooks Online

Learn how to reconcile your accounts so they match your bank and credit card statements.

Just like balancing your chequebook, you need to review your accounts in QuickBooks to make sure they match your real-life bank and credit card statements. This process is called reconciling.

We recommend reconciling your checking, savings, and credit card accounts every month. Once you get your bank statements, compare the list of transactions with what you entered into QuickBooks. If everything matches, you know your accounts are balanced and accurate.

Step 1: Review your opening balance

When you connect your bank and credit cards to online banking, QuickBooks automatically downloads your transactions and enters the opening balance for you. You don't need to worry about the opening balance for these types of accounts.

If you’re reconciling other types of accounts for the first time, review the opening balance. It needs to match the balance of your real-life bank account for whatever day you choose to start tracking the account in QuickBooks.

If you forgot to enter an opening balance but you're already tracking transactions in the account, don't worry. Here's how to enter an opening balance manually later on.

And if you recently entered older transactions that come before your opening balance, here's how to reconcile them.

When you create a new account in QuickBooks, you pick a day to start tracking transactions. You enter the balance of your real-life bank account for whatever day you choose. This starting point is the opening balance. We recommend setting the opening balance at the beginning of a bank statement. This makes your first reconciliation much easier.

Step 2: Start your reconciliation

Once you get your bank statement, you can start reconciling. If you're reconciling multiple months, start with your oldest bank statement. Reconcile each month separately, one statement at a time.

  1. In QuickBooks Online, select Settings ⚙ and then select Reconcile. If you're reconciling for the first time, select Get Started first and then Let's do it.
  2. From the Account ▼ dropdown menu, select the account you want to reconcile. Make sure it's the same one on your statement.
    Important: If you see a message about issues with a previous reconciliation, select We can help you fix it. You'll need to fix these issues before you start.
  3. Check the Last statement ending date. Make sure your bank statement starts the day after your last reconciliation.
  4. Review the Beginning balance. Make sure the beginning balance in QuickBooks matches the one on your bank statement. Here’s what to do if they don't match.
  5. Enter the Ending balance and Ending date as they're written on your bank statement. Some banks call the ending balance a "new balance."
  6. When you're ready to start, select Start reconciling.

Step 3: Compare your bank statement and QuickBooks

To reconcile, simply compare the list of transactions on your bank statement with what's in QuickBooks. The tricky part is making sure you have the right dates and transactions. When you're done reviewing your statement, you'll know everything made it into QuickBooks.

The steps for reconciling accounts connected to online banking are slightly different from accounts that aren't connected. Follow the section for the type of account you're reconciling:

Before you start, make sure youmatch and categorise all of your downloaded transactions.

Since all of your transaction info comes directly from your bank, reconciliation should be a breeze. In some cases, your accounts are already balanced from the start.

  1. When you're ready, start with the first transaction on your bank statement.
  2. Find the same one in the Reconciliation window in QuickBooks.
  3. Compare the two transactions. If they match, make sure there's a tick next to the amount in QuickBooks.
  4. If a transaction is on your statement but isn't marked in QuickBooks, place a tick next to it on QuickBooks. If a transaction doesn't appear on your statement, don't mark it as reconciled.
  5. Compare each transaction on your statement with what's in QuickBooks.
  6. When you reach the end, the difference between your statement and QuickBooks should be $0.00. If it is, select Finish now and then select Done.
  7. Select View reconciliation report to review your work.>

If balances don't match at the end

If the difference isn't $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.

Is your account not connected to online banking? No problem. Here's how to manually reconcile accounts.

  1. Start with the first transaction on your bank statement.
  2. Find the same one in the Reconciliation window in QuickBooks.
  3. Compare the two transactions. If they match, put a tick next to the amount in QuickBooks.
  4. If a transaction doesn't appear on your statement, don't mark it as reconciled.
  5. If something (like the amount or payee) doesn't match what's on your bank statement, select the transaction in QuickBooks to expand the view. Then select Edit to open the form. Make edits so QuickBooks matches your statement.
  6. Compare each transaction on your statement with what's in QuickBooks.
  7. When you reach the end, the difference between your statement and QuickBooks should be $0.00. If it is, select Finish now and then Done.

    If balances don't match at the end

    If the difference isn't $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.

  • Your bank statement is the source of truth. QuickBooks should match your statements, not the other way around.
  • Reconcile early and often. The more you reconcile, the easier they'll be.
  • If you need to manually reconcile a specific transaction, or delete one you already reconciled, work with your accountant.
  • If you need to reconcile other types of accounts, like asset or liability accounts, talk to your accountant.

Next steps: Review or change reconciliations

To review a past reconciliation:

  1. Go to the Accounting menu and select Reconcile.
  2. To see past reconciliations by date, select Summary. Or to see them by account, select History by account.
  3. Use the dropdown menus to select the account and date range.

You can also print or export your reconciliation reports if you need to share them.

Edit completed reconciliations

After you reconcile, you can make changes, but be careful. Changes can unbalance your accounts since you'd change the ending balance. It also affects your beginning balance for your next reconciliation.

Start by reviewing a previous reconciliation report. If you reconciled an individual transaction on accident or it's an error, unreconcile it. If you adjusted a reconciliation, or need to start over, reach out to your accountant. These kinds of changes get complicated and quickly unbalance your accounts.

If you ever need help reconciling your accounts, use our reconciliation guide.

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