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.
It’s recommended to reconcile 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
Before you start with reconciliation, make sure you back up your company file.
If you’re reconciling an account for the first time, review the opening balance.
Step 2: Prepare for the reconciliation
Make sure you enter all transactions for the bank statement period you plan to reconcile. If there are transactions that haven't cleared your bank yet and aren't on your statement, wait to enter them.
Step 3: 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.
Important: If you're reconciling a Merchant or Payments account and QuickBooks Desktop sees that you aren't signed in, you'll see a sign-in window. This ensures your account is successfully linked to a valid company ID.
- Go to the Banking menu, then select Reconcile.
- In the Account field, select the bank or credit card account you want to reconcile.
- The Statement Date is automatically filled in. Usually, it's 30 or 31 days after the statement date of the previous reconciliation. Change it as needed to match your bank statement.
- QuickBooks also automatically enters the Beginning Balance. It uses the ending balance from your last reconciliation to get this number.
- Enter the Ending Balance based on your bank statement.
- Enter the Service Charge and Interest Earned based on your bank statement. Don't enter charges you've already entered in QuickBooks.
- Review the fields. If the info is correct, select Continue or OK.
If your beginning balance doesn't match your statement, don't worry. You have a few tools that can help you.
- If numbers don't match, select Locate Discrepancies. This gives you reports you can use to find discrepancies and other reconciliation issues.
- If you still have issues, here's how to fix your opening balance and beginning balance.
- If you need to start over from scratch, you can select Undo Last Reconciliation.
Note: When you undo a previous reconciliation, your beginning balance reverts to the beginning balance of your previous reconciliation. All cleared transactions on the reconciliation become uncleared.
Step 4: Compare your bank statement and QuickBooks
To reconcile, simply compare the list of transactions on your bank statement with what's in QuickBooks.
Make sure you have the right dates and transactions. When you're done reviewing your statement, you'll know everything made it into QuickBooks.
Before you begin
Here are a few things you can do to make your reconciliation easier.
- If you only want to see transactions for the statement period you're working on, select Hide transactions after the statement’s end date.
- If you're reconciling a credit card account, the sections are Charges and Cash Advances (purchases) and Payments and Credits (payments to the credit card company). Focus on one section at a time.
- If you’re reconciling an account for online banking, select Matched. Then, enter the Statement Ending Date from your bank statement. This automatically selects transactions QuickBooks downloaded and matched.
Note: A matched transaction in the register has a lightning bolt next to it. A checkmark replaces the lightning bolt after you reconcile it.
- If you want to sort the list, select the header or title of a column.
- If there are more transactions in QuickBooks than there are on your bank statement, resort the list.
Match your transactions
- When you're ready, start with the first transaction on your bank statement.
- Find the same one in the Reconciliation window in QuickBooks.
- Compare the two transactions. If the transactions match, select and put a checkmark in the checkmark column. This reconciles the transaction.
- Compare each transaction on your statement with what's in QuickBooks. As you clear or add transactions to the reconciliation, the Cleared Balance amount decreases. The amount increases if you clear or add deposits and other credit amounts.
If a transaction doesn't appear on your statement, don't mark it as reconciled. Here are some quick ways to check if things are matching:
- If you want to see the total number and amount of transactions you've added to the reconciliation, look for the Items you've marked cleared section. Many banks provide the same summary of transactions on bank statements. Compare the total number of transactions to see if anything is missing.
- If you need to edit or get more info about a specific transaction, select the transaction, then Go To or double-click.
- If you need to take a step back and make a change to the info you entered in "Step 3: Start your Reconciliation," select Modify. The service charges, interest, and ending balance info are shown in the section next to it.
- When you reach the end, the difference between your bank statement and QuickBooks should be $0.00. If it is, select Reconcile now.
Next Steps: Review the reconciliation
After you reconcile, you can select Display to view the Reconciliation report or Print to print it. Your work is done.
If you need to review a reconciliation report later on:
- Go to the Reports menu, then select Reports Center.
- Search and open a Previous Reconciliation report.
- Select the account you reconciled, then either Detail, Summary, or Both.