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How to Reconcile in QuickBooks Online

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Reconciliation is a great practice to add to your business to-do list. You can easily roll it into other month end tasks you work on to keep up on the state of your company. While not required, keeping a close eye on your books and what’s coming in and out can save you from a lot of issues in the future.  Reconciling gives you insight into your business and QuickBooks Online is equipped to make the process as easy as possible.

 Reconcile Screen.png

When reconciling an account, the first bit of information you need is the opening balance. If you choose to connect your bank and credit cards to your online account, QuickBooks will automatically bring over transactions and also the opening balance for you.

The first thing you’ll start when reconciling an account is Reviewing your opening balance. Get your bank statement and then follow the steps below:

  1. In QuickBooks Online, select Settings ⚙ and then Reconcile. If you're reconciling for the very first time, select Get started to continue.
  2. From the Account ▼ dropdown, select the account you want to reconcile.
  3. Review the Beginning balance. Does this match what you see in your statement? If they don’t match, take a look at this article: Fix issues the first time you reconcile an account in QuickBooks Online
  4. Enter the Ending balance and Ending date on your statement. This may also be called the "new balance."
  5. When you're ready to start, select Start reconciling.

The next step is basically a game of match. You’ll want to look at your statement, starting with the first transaction listed and find that same transaction in the Reconciliation window in QuickBooks. If they match, put a checkmark next to the amount. This marks that transaction as reconciled. Continue this through the whole statement.

You can also make small edits if needed right within this window. For example, if the payee is wrong, you can click on the transaction to expand the view and then select Edit.

Need to undo a reconciled transaction? Not a problem! (If you’re in the middle of reconciling, stay on the page you’re on and skip to step 4).

  1. Go to Accounting on the left menu.
  2. Select Chart of Accounts.
  3. Find the account holding the transaction. Choose View register
  4. Select the transaction you want to unreconcile to expand the view.
  5. If the transaction is reconciled, you’ll see an “R.”
  6. Click the checkbox until it is blank. This removes the transaction from the reconciliation.
  7. Select Save.

Once you’re done, you should see a difference of $0, which means your books are balanced. Yay! Lastly, select Finish now and you are good to go.

Here are a few additional articles to help you accomplish a successful reconciliation:

Did things go smoothly for you or did you run into some bumps? Don’t you worry, stay tuned for another article addressing any setbacks you may encounter on your reconciling journey, and how to fix them!

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