How to Reconcile in QuickBooks Online

Reconcile in QuickBooks Online process is a part of accounting management by using the QuickBooks accounting software. This may be sound like a critical task to manage for the new ones. But here we want to clear that, this makes it easier to handle bank accounts effortlessly in the right path. 

Here in this article, you can get a clear vision of this topic. We will discuss, what is QuickBooks reconciliation, how to do it, and many more. Let’s start the article; 

What is Reconciliation in QuickBooks

Reconciliation in QuickBooks is the process, by which we can review the accounts in QuickBooks to ensure that the accounts match with the bank, and credit card statements. It makes it easy to compare the beginning balance with all the transactions made by you within the QuickBooks company file

Now let’s know, how to reconcile in QuickBooks Online;     

QuickBooks How to Reconcile Online

It needs 3 single steps to reconcile an account in QuickBooks Online. Let’s follow the steps to reconcile on QuickBooks.

Step 1: Cross-Check the opening Balance with your Bank Account  

It is a very important step in the QuickBooks Online bank reconciliation process, especially for them, those who are new to this. Here you need to review your opening balance with your personal bank account to match the balance, and to start tracking transactions in QuickBooks. 

QuickBooks will download the transactions and the opening balance enters automatically when you will connect your bank or credit cards to online banking. So you need not worry about the manual download process of the opening balance. 

After completing the 1st step, go for the 2nd step.

Step 2: Start the QuickBooks Online Reconciliation    

You have the detail of the credit card, and the bank statement, now you can start the reconciliation process. 

  • First match all of the categorized downloaded transactions if you already connected your accounts to online banking.
  • Login to the QuickBooks Online, and go to the ‘Settings’ tab, and select the ‘reconcile’ option. (There may be an option of ‘Get Started’, if you are doing this for the first time.)
  • After that, go to the ‘Account’  drop-down menu, and choose the account, that you want to reconcile.
  • Go to the ‘QuickBooks Matches’ to review the beginning balance. 
  • Now put the ending balance and the ending date on the statement. (The ‘Ending balance’ is also known as ‘new balance’.)
  • After that, review the last statement ending date. It will be the end date of the last reconciliation, and the current bank statement will be the start day. 
  • Again cross-check all of the above steps, and select the ‘Start Reconciling’ option, if you are ready to start. 

   The reconcile QuickBooks process has been started, let’s complete the process, with the last step. 

Other Useful Resources:

How to Set Up Administrator In QuickBooks for The First Time

Set Accounts Receivable Workflows in QuickBooks (Customer Transaction)

QuickBooks Online Apps: Make your Bookkeeping Handy

Step 3: Compare the Statement with QuickBooks 

Make a comparison between the transactions on your statement, and QuickBooks. It may take some time, but it will ensure you have the right transaction and right date n QuickBooks. 

There are two scenarios. We have mentioned the scenarios below and provided the procedure for comparing them. Have a look;

Scenario 1: If you have reconciled accounts to Online Banking 
  • Start the process with the first transaction on the statement.
  • And go to the ‘Reconciliation’ window of the QuickBooks to find the same transactions.
  • Make a comparison between the two transactions, and put the checkmark if they match.
  • Don’t put a checkmark, if a transaction statement doesn’t appear the same.  
  • Compare all of the transactions.
  • After comparing all the transactions, the statement should be $0.00 form.
  • Click the ‘Finish now’ option, if it is. 
Scenario 2:  If you have reconciled accounts, but not in Online Banking  
  • Go to the statement, and start the matching process with the first transaction.
  • Visit the ‘Reconciliation’ window, and find out the same transactions.
  • Put a checkmark, if they match with each other.
  • At the last, the difference between QuickBooks, and the statement should be $0.00. 
  • And click the ‘Finish Now’ option.     

How to Get Previous Bank Reconciliation in QuickBooks Online

  • Sign in to QuickBooks Online, and go to the ‘Reports’ menu. 
  • Click on the ‘Banking’ tab, and select the ‘Previous Reconciliation’ option from the list.
  • Now you can see the radio button of ‘Transactions cleared plus any changes made to those transactions since the reconciliation’.
  • After that, run the QuickBooks Online bank reconciliation report, and click the ‘Customize Report’ option.
  • And select the date. 

Tips & Tricks to Do After Reconcile in QuickBooks Online  

Most of the users reconcile an account in QuickBooks Online, but not maintain it after reconciliation, which makes the users difficult to manage. Here we have shared some of the tips to do after reconciliation. 

  • Make reconciliation in a particular interval of time. Like if you have reconciled your bank account in QuickBooks Online on today’s date then you need to reconcile it at the same time. So that, you can make a quick correction of the bank statements.
  • By doing it, the filing of taxes will be much easier.
  • Make sure that, all of your accounts are connected to QuickBooks otherwise, it will not reflect the breadth of your business at the end of the year number.    
  • You can undo reconciliation in QuickBooks, if there will be any kind of mistake occur.

Final Thought  

Reconciliation in QuickBooks is a short process but an important process for accounting management for all types of accounts. So feel free, and reconcile accounts. We tried our best to provide you the important information regarding this reconciliation process, without adding any unnecessary details. We hope, you find it informative. Still, if you have any doubts regarding this topic then we will suggest you get expert advice from our EnterpriseThought platform. 

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