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.
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 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 so your accounts stay balanced.
If you recently entered older transactions that come before your opening balance, here's how to reconcile them.
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.
- In QuickBooks Online, select Settings ⚙and then select Reconcile. If you're reconciling for the first time, select Get Started first.
- From the Account ▼ drop-down 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 them before you start.
- Do a quick review before you start:
- Last statement ending date: Make sure your bank statement starts the day after your last reconciliation.
- 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.
- Enter the Ending balance and Ending date as it's written on your bank statement. Some banks call the ending balance a "new balance."
- 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.