In this tutorial, you’ll learn how to reconcile in QuickBooks online.
The accounting procedure of reconciliation guarantees that two different financial records are accurately matched.
It’s critical to reconcile your business bank accounts on a monthly basis and double-check that everything is in order.
Why is Reconciliation Important?
When you enter and compare data in QuickBooks Software and find that it matches, you may be certain that the information is correct and balanced.
You make certain that no transaction goes unnoticed.
When it comes to filing your taxes, this is also crucial. You will be far ahead of the game before your next tax file if you retain and check your data throughout the year. It’s also necessary for keeping records.
Within a company, there are many different sorts of accounts. It’s critical to reconcile all of the primary accounts, including:
How to Reconcile Credit Card in QuickBooks Online: Step-by-Step Guide
QuickBooks Online reconciling is a simple and fast process that allows you to quickly reconcile your company’s financial data and look for any significant differences.
Let’s have a look at a step-by-step guide on how to accomplish this –
Step 1: Get your Financial Statements
You’ll need your financial statements on hand before you can reconcile on QuickBooks. The majority of financial statements are now sent out via the internet.
Step 2: Begin the Reconciliation Process
Once you have your monthly bank or credit card statement, you can begin reconciling. If you’re reconciling multiple months, start with the oldest statement and work your way backwards.
If your accounts are linked to internet banking, make sure to match and categorise all of the transactions you’ve downloaded.
- Select Settings and then Reconcile in QuickBooks Online. To continue, click Get started if you’re reconciling for the first time.
- Select the account you want to reconcile from the Account dropdown. Check to see if it’s the same as the one on your statement.
Step 3: Fill in the Statement Information
- Based on your bank statement information, enter the “Ending balance” and “End date.”
Step 4: Start Matching your Expenses
- Check off transactions when you match them to your bank statement.
- Use filters to make transactions easier to find.
- Continue until the “Difference” field is 0 and the Success! page appears.
Step 5: Complete the Reconciliation
If you get the optimal difference value – zero – at the bottom. Click the Finish now icon to create the bank reconciliation reports.
As a result, the online bank reconciliation process in QuickBooks will be completed.
Step 6: Examine the Reconciliation Report
Examine the Reconciliation Reports attentively, then return to the “reconcile” area, where you will see the reconciliation you entered, and click it to display the detail window for verifying purposes.
Important: You can also create a folder called Bank/credit card account in which you can preserve all of your bank reconciliation data.
Why Should You Reconcile in QuickBooks Online and When Should You Do It?
You should reconcile your bank accounts on a monthly basis, ideally around the time you receive notification that your bank statement is available.
As a result, QuickBooks Online matches what your bank or credit card company says you have, spent, and earned.
The previous month’s ending balance should match the beginning balance of the following month (even if just for a few seconds!).
And the balance in your QuickBooks Online register at the end of the previous month should match the sum on your bank account.
Your accountant will most likely be the one to handle your QuickBooks Online bank reconciliations.
Suppose the chart of accounts is the foundation of accounting, and the bank feed is the foundation of QuickBooks Online. In that case, bank reconciliation is the monthly conclusion of your financial data’s existence.
Reports are vital, but bank reconciliation is essential for a successful organisation.
The file is 98 percent healthy if your bank reconciliation is current and all of the balances match.
Finally, this crucial accounting chore may be the most accurate predictor of how long it will take your accountant to clean up your QBO file.
Understanding the entire process of how to reconcile in QuickBooks online is a good idea.
To reconcile your bank statements in QuickBooks online at least once a month, make it a practice. And it’s better if you do it as soon as you get your bank statement.
As you can see, understanding how to utilise QuickBooks Online requires knowledge of bank reconciliation. However, it is a simple, step-by-step procedure, so get started!