How to Reconciliation QuickBooks Bank?

How to Reconciliation QuickBooks Bank?

QuickBooks Bank Reconciliation seems a difficult term. Yet, in simple words, it conveys matching of the transactions in bank statements with those present in Quickbooks. Moreover, it is an important process for a business. 

The procedure for setting up Bank Reconciliation Quickbooks can get tricky. Therefore, this article provides an easy way to do so. Yet, before that it is also necessary to see why the process is necessary for your business.

Hence, read the below article with utmost attention.

Why is Bank Reconciliation necessary?

There can be a lot of reasons why this process is important for your business. Hence, we have listed some below : 

  • Firstly, all your transactions record in the software of Quickbooks.
  • In addition, all reconciled transactions get cleared in Quickbooks.
  • Moreover, you get access to an advanced balance sheet. And also profit and loss statements.
  • Similarly, the user occupies the information related to cleared and uncleared transactions. 
  • Likewise, Every bank statement transaction is listed in the QB software.

You May Also Read: QuickBooks Bank Feeds Not Working

Before Reconciliation of Quickbooks Bank

Keep in mind these following things :

  • First of all, you need to get a bank or credit card account in Quickbooks. In addition, make sure you have the correct balance at the start.
  • Moreover, do not forget to take a backup of your QB file.
  • In addition, get the bank statement that has to be reconciled.

Procedure to Set Up Quickbooks Bank Reconciliation

In order to set up Online Quickbooks Bank Reconciliation, follow the below steps : 

  1. Visit the Reconciliation Menu
  • Firstly, from the home page, go to the Reconcile tab. 
  • Then, at the left side of the company name, click on Gear.
  • After that, go to tools.
  • Here, you’ll find the Reconciliation icon. Click it.
  1. Selecting Bank/Credit card account
  • Now, you’ll get a drop down list. Here, you have to choose a bank or credit card account for reconciliation.
  • Consequently, now hit the Reconcile now option.
  1. Entering statement details
  • First of all, you need to verify the copy of the report or statement of the bank account. This bank account should be the one you are reconciling with QB software.
  • After that, you must note down the end date and ending balance.

For end date : 

  • First, visit Quickbooks Online again. Then, click on the Reconcile overlay. 
  • Here, you’ll get a calendar drop down. 
  • Hence, mention the statement end date here.

For ending balance : 

  • Firstly, visit the Reconcile overlay. 
  • Secondly, type the statement ending balance here.
  • The process will begin.
  • After the process completes, tap Ok.
  1. Start Matching Expenses
  • Now, you have to make sure of the bank account transaction history for the use of statements. 
  • Hence, see the financial transactions with caution.
  • Then, go to the Reconcile Window. 
  • Here, you have to match financial transactions from bank reports/statements to the ones in your list.
  • Match and check the box at the side of every transaction so that it matches.

Statement Ending Balance

It shows you the amount entered in the bank/credit card statement. 

Beginning Balance

It reflects the ending balance of last month’s statement.

Cleared Balance

After you start to reconcile every item, the cleared balance amount will change. Since it depends on if you for a payment or for a deposit transaction.

Payments

The payments will increase after you opt payments to be reconciled from a given transaction.

Deposits 

After you have chosen deposits from transaction to reconcile, consequently, the transaction will increase.

Difference 

The changes are calculated by Quickbooks Online. Thus, it provides the results between your statement balance and cleared balance. Hence, a zero in the difference is always a good result. 

  1. Finishing Reconciliation Process
  • If you have accomplished zero as the result, then it is good for you. 
  • Hence, click on the Finish Now button.
  • Consequently, This will start creating bank reconciliation reports. 
  • Thus, you have finished the process for Quickbooks Bank Reconciliation.
  1. Examining the Reconciliation Report
  • Hence, the reports are generated. 
  • Thus, you have to see clearly into the reports.
  • Go to the Reconcile section again. 
  • Here, you will see your reconciliation done.
  • Therefore, click on it.
  • It will open the detail window for examining.
  • Thus, click on the Run report option.
  • Likewise, This will open detailed information for reconciliation.
  • Hence, in order to print these reports : 
  • Go to the reports window.
  • Click on print reconciliation report.
  • Hence, You will get the print.

As the reports play an important role for decision making, reporting helps us to examine data of the reconciliation. In addition, it provides you records of the transactions. Thus, you can keep them for future use.

You May Also Read: QuickBooks Error 324

Conclusion

We hope that this article has provided all the information one needs for QuickBooks Bank Reconciliation.

Now, you can easily set up Quickbooks Online Bank Reconciliation on your own. Yet, if you face any kind of problems while dealing with the procedure, fear not to contact us

Contact us +1-808-374-3003 and let the experts solve your queries. We will be happy to assist you in this.

Frequently Asked Questions (FAQs)

Ques 1 – How to undo reconciliation in Quickbooks Online?

Ans – 

  • Firstly, open your company’s file.
  • Then, visit the accounting menu.
  • Here, go to the reconcile tab.
  • Now, tap on History by account.
  • After that you have to choose the account you want to reconcile. In addition, also select the date range in the drop down.
  • Go to reconciliation on that list.
  • Then, click on the view report. 
  • Thus, this will open the reconciliation report.
  • Then, go to the action column.
  • Here, click on the Undo option.
  • Then, hit yes and undo for confirmation.

Ques 2 – Why can’t I undo a reconciliation in Quickbooks Online?

Ans – In order to undo reconciliation in Quickbooks, one should have access to Quickbooks Online Accountants. Since the Undo button in the action column is only here, one can only use this version for the undo procedure.

You can also ask your accountant to do it for you, if he uses it.

Ques 3 – How to delete reconciliation in Quickbooks Online? 

Ans – 

  • Go to the reconcile tab.
  • Now, tap on History by account.
  • After that you have to choose the account you want to reconcile. In addition, also select the date range in the drop down.
  • Go to reconciliation on the list.
  • Then, click on the view report. 
  • Thus, this will open the reconciliation report.
  • Then, go to the action column.
  • Here, click on the Undo option.
  • Then, hit yes and undo for confirmation.

Ques 4 – How to do Bank reconciliation in Quickbooks?

Ans – In order to do a Bank reconciliation in Quickbooks, you have to follow the following steps : 

  • Firstly, go to the reconciliation menu.
  • Then, select a bank/credit card account.
  • After that, enter the statement details.
  • Then, match the expenses.
  • Once you get a zero balance, the process gets accomplished. 
  • Later, examine the reconciliation report.

For a detailed description of the procedure, you can refer to the article.

Ques 5 – How do I reprint reconciliation reports in Quickbooks?

Ans – 

  • Go to the reconcile section.
  • Here, you will see your reconciliation done.
  • Therefore, click on it.
  • It will open the detail window for examining.
  • Thus, click on the Run report option.
  • Likewise, This will open detailed information for reconciliation.
  • Hence, in order to print these reports : 
  • Go to the reports window.
  • Click on print reconciliation report.
  • Hence, You will get the print.
Summary
Article Name
How to Reconciliation QuickBooks Bank? | Procedure to Set Up
Description
QuickBooks Bank Reconciliation are often the most tedious part of business accounting. QB Online makes bank reconciliation faster, & easier
Author
Publisher Name
QBPremierSupport
Publisher Logo