To reconcile your bank account in QuickBooks Online (QBO) and fix any discrepancies, you don’t need to enter each transaction, Admin404. I’ll explain this process in more detail.
The reconciliation process ensures that transactions in QBO align with those on your bank statement. Typically, posting transactions occurs before reconciliation, and the most common reasons for mismatches during reconciliation are:
- Incorrect Beginning Balance: If the beginning balance in QBO doesn’t match the opening balance on your bank statement, the reconciliation will never be accurate. This issue usually occurs if a prior reconciliation was completed incorrectly or if a transaction from a previous period was altered.
- Missing Transactions: A transaction on your bank statement, such as a bank fee or a cleared check, isn’t recorded in QBO.
- Duplicate Transactions: A transaction was manually entered into QBO and then imported again via the bank feed, causing duplication.
- Incorrect Amounts: The transaction amount in QBO does not match the amount listed on your bank statement.
- Transactions with Incorrect Dates: Transactions were recorded with dates outside the statement period you're trying to reconcile.
- Incorrectly Categorized Transactions: A transaction was recorded in the wrong bank account in QBO.
If a transaction appears on your bank statement but is missing in QBO, you will need to manually add or "post" it. This is often the reason deposits fail to show up during reconciliation.
Here are the steps to fix missing deposits:
- Click the + New button and select Bank Deposit.
- If you see a list of payments, select the ones that match the total deposit amount that appears on your bank statement.
- Choose the correct bank account and date, then click Save and close.
This will transfer the funds from Undeposited Funds to the bank account and create a single, combined transaction that will now appear on your reconciliation screen.
For transactions like bank service charges or interest income, you can add them directly from the Banking tab by clicking on the transaction and selecting Add, or by manually creating them in your Chart of Accounts.
If you have additional questions regarding QuickBooks, feel free to reach out. We’re here to help!
