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Learn the reconcile workflow

by Intuit•3• Updated 2 weeks ago

Using the Reconcile Companion

The Reconcile Companion extracts data from uploaded bank statements and compares it with the data already in QuickBooks Online.

  1. Navigate to the Reconcile tab.
  2. Enter the Ending balance and Ending date.
  3. Select Upload from this device.
  4. Find and select the applicable Bank Statement.
  5. Wait for the Reconcile Companion to finish extracting the statement details.
  6. Select Start reconciling.
  7. Review the Insights tab to see the statement comparison results.
    • Paired transaction - Transactions in QuickBooks that were successfully matched to the statement
    • Transactions in bank feed needs review - Transactions within the statement period that are still in For Review
    • Extra transactions in QuickBooks that are already uncleared* - Transactions in QuickBooks that are not on the bank statement

*QuickBooks will also provide a list of potential reasons why there may be extra transactions in QuickBooks that are not listed on the Bank Statement -- e.g. Timing Differences, Duplicate Entries, Manual Entries, or Uncleared Transfers/Deposits.

Just like balancing your chequebook, you need to regularly review your accounts in QuickBooks. You need to make sure the amounts match your real-life bank and credit card statements. This process is called reconciling (or a reconciliation).

Use this guide anytime you need help doing or fixing a reconciliation. If you’re new to reconciliations or need more help, reach out to your accountant. This can get tricky and they know how to handle the next steps. Don't have an accountant? We can help you find one.

Here's everything you need to know to get started.

Check the opening balance

When you create a new bank or credit card account in QuickBooks, you need to enter an opening balance. The first time you reconcile the account, always double-check the opening balance:

Reconcile an account

Once you have your monthly bank statements, you can reconcile your accounts. You'll compare each transaction in QuickBooks with what's recorded on your bank statement. At the end, the difference between the account in QuickBooks and your bank statement should be R0.00.

Sometimes things get missed — it's bound to happen every once in a while. If you find a mistake in a reconciliation, don't worry. Follow the section based on what type of account you're reconciling.

Reconciling an account for the first time

If you're reconciling an account for the first time, review the opening balance in QuickBooks. Make sure it matches the balance in your real-life account for whatever day you picked:

Reconciling an account you didn't enter an opening balance for

If you forgot to enter an opening balance and you're already tracking transactions in the account, here's how to enter an opening balance later on.

Reconciling transactions that are older than the opening balance

If you added older transactions to QuickBooks that are dated before your opening balance, it may impact the account's total. Here's how to reconcile older transactions so everything stays balanced.

Reconciling an account you've reconciled in the past

If you reconciled an account more than once, you likely already reviewed the opening balance.

Instead, check the beginning balance. Make sure the beginning balance for the time period you're reconciling in QuickBooks matches your bank statement:

Fixing issues during a reconciliation

If you already reviewed your opening and beginning balances, focus on the ending balance.

At the end of each reconciliation, the difference between the ending balance in QuickBooks and your bank statement should be R0.00. If there's still a difference, your accounts aren't balanced:

If you need to make changes after you reconcile, start by reviewing a previous reconciliation report. If you reconciled a transaction by accident, here's how to unreconcile individual transactions.

If you adjusted a reconciliation by mistake or need to start over, reach out to your accountant. These kinds of changes can get complicated and unbalance your accounts. Your accountant knows the right steps.

If you adjusted a reconciliation by mistake or need to start over, reach out to your accountant. These kinds of changes can get complicated and unbalance your accounts. Your accountant knows the right steps.

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