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 checking, savings, and credit card accounts every month. Here's how to get started. Or check out our complete reconciliation guide.
This video shows you how to reconcile a bank account and how to resolve discrepancies.
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: When you connect your bank and credit cards to online banking, QuickBooks automatically downloads transactions and enters the opening balance for you. You don't need to worry about the opening balance.|
Or, 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:
- If your accounts are connected to online banking, make sure you match and categorise all of your downloaded transactions.
- In QuickBooks Online, select Settings ⚙ and then Reconcile. If you're reconciling for the very first time, select Get started to continue.
- 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.
- 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.
- 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.)
- 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.
- 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 source of truth, 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.
Next steps: Review past reconciliations
Run a reconciliation report to review your work:
- Go to the Accounting menu and select Reconcile.
- Select History by account.
- 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.