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Intuit
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Reconcile accounts in QuickBooks Online

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

Just like balancing your checkbook, 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 you 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.

Step 1: Review your opening balance

If you’re reconciling an account for the first time, review the opening balance. The opening balance needs to match the balance of your real-life bank account for the day you choose to start tracking transactions 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 one manually before you reconcile so your accounts stay balanced.

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. If you connect your bank and credit cards to online banking, QuickBooks automatically downloads your transactions and enters the opening balance for you.

Step 2: Start your reconciliation

Once you get your bank statement, you can start.

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.
  2. From the Account ▼ drop-down menu, select the account you want to reconcile. Make sure it's the same one on your statement.Reconcile
    Important: If you see a message about issues with a previous reconciliation, select We can help you fix it. You'll need to fix them before you start.
  3. Do a quick review before you start:
    1. Last statement ending date: Make sure your bank statement starts the day after your last reconciliation.
    2. Beginning balance: Make sure the beginning balance in QuickBooks matches the one on your bank statement. This is the account's balance at the beginning of the time period you're reconciling. Here’s what to do if they don't match.
  4. Enter the Ending balance and Ending date as it's written on your bank statement. Some banks call the ending balance a "new balance."
  5. When you're ready, 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.

If a transaction doesn't appear on your statement, don't mark it as reconciled. 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 account you're reconciling.

Reconcile bank and credit card accounts connected to online banking

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

  1. If you haven't already, match and categorize all of your downloaded transactions.
  2. When you're ready, start with the first transaction on your bank statement. Find the same one in the Reconciliation window in QuickBooks.
  3. Compare the two transactions. If they match, make sure there's a checkmark next to the amount in QuickBooks.CheckIf a transaction is on your statement but isn't marked in QuickBooks, place a checkmark next to it on QuickBooks.
  4. Compare each transaction on your statement.

When you reach the end, the difference between your statement and QuickBooks should be $0.00. If it is, select Finish now to complete the reconciliation.FinishIf the difference isn't $0.00, or you can't find a transaction that should be in QuickBooks, here’s how to review everything.

Reconcile accounts that aren’t connected to online banking

Not connected to online banking? No problem. Here's how to manually reconcile everything.

  1. Start with the first transaction on your bank statement. Find the same one in the Reconciliation window in QuickBooks.
  2. Compare the two transactions. If they match, place a checkmark next to the amount in QuickBooks.Compare
  3. 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.
  4. Compare each transaction on your statement.

When you reach the end, the difference between your statement and QuickBooks should be $0.00. If it is, select Finish now to complete the reconciliation.FinishIf the difference isn't $0.00, or you can't find a transaction that should be in QuickBooks, here’s how to review everything.

 

Best practices for reconciliations:

  • Your bank statement is the source of truth. Make QuickBooks 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 or delete a reconciled transaction, reach out to your accountant for guidance.
  • If you need to reconcile other types of accounts, like asset or liability accounts, talk to your accountant.

Next steps: Review or change reconciliations

If you need to review a past reconciliation:

  1. Go to the Accounting menu.Select Reconcile.
  2. To see past reconciliations by date, select Summary.
  3. To see past reconciliations by account, select History by account.
  4. Use the drop-down 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 still make changes to it. Keep in mind, going back and making edits can complicate things since you're changing the balance from $0. It also affects your beginning and ending balances.

Start by reviewing a previous reconciliation report. If you reconciled a transaction on accident or it's an error, you can unreconcile individual transactions.

If you adjusted a reconciliation or need to undo the entire thing, we highly recommend you reach out to your accountant. These kinds of changes can get complicated and quickly unbalance your accounts.

Your books done right - guaranteed

Get a QuickBooks-certified bookkeeper to categorize transactions and reconcile your bank statements every month so your books are always 100% accurate. Learn more about QuickBooks Live Bookkeeping.

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