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Reconcile an account in QuickBooks Online

by Intuit•47• Updated 1 month ago

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

You need to review your accounts in QuickBooks to make sure they match your bank and credit card statements. This process is called reconciling.

When you have your bank statement in hand, you'll compare each transaction with the ones entered into QuickBooks. If everything matches, you know your accounts are balanced and accurate. We recommend reconciling your current, savings, and credit card accounts every month. Check out our complete reconciliation guide to understand the full workflow.

Step 1: Review your opening balance

If you're reconciling an account for the first time, review the opening balance. It needs to match the balance of your real-life bank account for the day you decided to start tracking transactions in QuickBooks.

Tip: You can save a step by connecting your bank and credit cards to online banking, which automatically downloads transactions and enters the opening balance for you.

If you forgot to enter an opening balance in QuickBooks in the past, don't worry. Here's how to enter an opening balance later on.

Need more info? Learn more about opening balances.

Step 2: Start a reconciliation

Once you have your monthly bank or credit card statement, you can start reconciling. If you're reconciling multiple months, do them one statement at a time, starting with your oldest statement:

  1. If your accounts are connected to online banking, make sure you match and categorise all of your downloaded transactions.
  2. Go to Settings Settings gear icon. and then Reconcile (Take me there). If you're reconciling for the very first time, select Get started.
  3. From the Account ▼ dropdown, select the account you want to reconcile. Make sure it's the same one on your statement.
    Important: If you see a message about a previous reconciliation, select We can help you fix it. You need to fix this before you start.
  4. 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.
  5. Enter the Ending balance and Ending date on your statement. Some banks call the ending balance a "new balance." (If this account was reconciled before, look below the Ending date field at the last statement ending date, making sure you're reconciling the following month's statement).
  6. 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.
  7. When you're ready to start, select Start reconciling.

Step 3: Compare your statement with QuickBooks

To reconcile, simply compare the list of transactions on your bank statement with what's in QuickBooks.

  • On the Reconcile page, you'll see all the transactions that you've entered into QuickBooks for the selected period. Using your bank statement as a referring to your bank statement, tick off all the transactions in QuickBooks that are listed on your statement.
  • Once you've completed the process correctly, the Difference amount should be '0'.

Note: Transactions that have come directly from your bank account will have a green box icon next to it. For transactions that have been automatically added into QuickBooks from your bank feed, you will see a green box with a plus sign.

Follow the section for the type of account you're reconciling:

Since all of your transaction info comes directly from your bank, reconciling should be a breeze. In some cases, your accounts are already balanced. You can see transactions that have come directly from your bank feed, and transactions that you've manually added in QuickBooks.

  1. Start with the first transaction on your statement.
  2. Find the same transaction in the Reconciliation window in QuickBooks.
  3. Compare the two transactions. If they match, put a tick next to the amount in QuickBooks. This marks it as reconciled.
  4. If a transaction doesn't appear on your statement but you see it in QuickBooks, don't put a tick.
  5. Compare each transaction in your statement with what's in QuickBooks.
    Tip: If you're absolutely sure you've found a match but something small isn't quite right, like the payee, don't worry. Select the transaction in QuickBooks to expand the view. Then select Edit. Make edits so the details match your statement.
  6. When you reach the end, the difference between your statement and QuickBooks should be GBP £0.00. If it is, select Finish now.

Note: If the difference isn't GBP £0.00, or you can't find a transaction that should be in QuickBooks, don't worry. Here's how to review and fix common issues.

Not connected to online banking? No problem. Here's what to do:

  1. Start with the first transaction on your statement.
  2. Find the same transaction in the Reconciliation window in QuickBooks.
  3. Compare the two transactions. If they match, put a tick next to the amount in QuickBooks. This marks it as reconciled.
  4. If a transaction doesn't appear in your statement but you see it in QuickBooks, don't put a tick.
  5. Compare each transaction in your statement with what's in QuickBooks.
    Tip: If you're absolutely sure you've found a match but something small isn't quite right, like the payee, don't worry. Select the transaction in QuickBooks to expand the view. Then select Edit. Make edits so the details match your statement.
  6. When you reach the end, the difference between your statement and QuickBooks should be GBP £0.00. If it is, select Finish now.

Note: If the difference isn't GBP £0.00, or you can't find a transaction that should be in QuickBooks, don't worry. Here's how to review and fix common issues.

Troubleshooting for reconciliations

If the Difference amount is not '0', here are a few things you can do:

  • Make sure the dates entered for each transaction in QuickBooks match the dates for each transaction in your bank statement. If there are any missing QuickBooks transactions:
  • Select + New.
  • Add the transactions you need.

If there are more QuickBooks transactions:

  • Select Cleared date to show all the transactions that have been manually added into QuickBooks. This is where you will normally find discrepancies in your reconciliation. You can even use the audit log to help you when you edit or delete transactions.

If the total number of transactions match:

  • Make sure that the amount of each QuickBooks transaction matches the amount of each transaction in your bank statement.

Next steps: Review past reconciliations

Run a reconciliation report to review your work:

  1. Go to Settings ⚙ and select Reconcile.
  2. Select History by account.
  3. Use the dropdown menus to select the account and date range. Or, print or export your reconciliation reports if you need to share them.

Edit completed reconciliations

You can make changes to past reconciliations, but be careful. Changes 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.

We're here to help
If you've got any questions or need a hand fixing a connection error, linking or reconciling a bank account, let us know. Sign in to QuickBooks and start a discussion in our QuickBooks Community.

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