Complete Guide For Reconciliation in Quickbooks

December 3, 2020
Diksha16

Reconciliation in Quickbooks is used for matching bank accounts to the cash account of any company. This Process used to see if any customer’s checks have bounced, or any checks you have issued have been altered or stolen and cashed without your knowledge. 

Also, this process will help you to identify any fraud. Thus, fraud detection is an essential reason to perform the Quickbooks bank reconciliation process.

In this blog, we will discuss both types of QuickBooks whether its desktop version or QuickBooks Database Server Manager.

 

In order to understand how to reconcile Quickbooks, we should know about bank reconciliation. Let’s see.  

What is Bank Reconciliation

As you know, Quickbooks software is used to maintain business expenses. And sometimes Quickbooks users make some mistakes, and sometimes due to some other resons, business bank statements get an error. Like ‘forgot to maintain a record of any transaction’. And other parties cheques can bounce. And maybe some fraud transactions occurred. And you don’t have knowledge about it. Hence in order to detect any omission in bank Account and Company cash Account. We have to do bank reconciliation. Similarly, you can do reconciliation in QuickBooks.

Read More : QuickBooks Support

Reconcile Bank accounts in QuickBooks Desktop

It’s a process of matching transactions that the user entered in the QuickBooks desktop with the records of your bank or credit card company. We recommend that you reconcile the QuickBooks desktop on a regular basis to ensure the accuracy of your accounting data.

We have given some important steps that you have to follow before starting reconciliation.

Keep a record of your credit or bank account.

  1. QuickBooks Desktop accounts for all accounts such as payments, deposits and bank fees.
  2. Keep a report of your bank or credit card statement
  3. All cash inward and outward in your QuickBooks bank register, as well as its closing balance, from the matches you hold in your real bank account.
  4. Enter all obscure transactions for the statement period
  5. Backup your QuickBooks company file. Make sure the bank or credit card account in QuickBooks has a correct start.

 

How to do Account Reconcile in Quickbooks online 

In order to match your QuickBooks account with your credit or bank account. User needs to do reconciliation in Quickbooks online. Because at the time of pay tax return. The user’s company accounts should perfect.

  1. You have to select the Accounting tab located in Nav Bar.
  2. Then select Reconcile Subtab.
  3. Choose an account that connected to the bank and credit card account one at a time.
  4. Enter the closing balance and closing date as appear on your bank statement.
  5. If the number entered by you doesn’t match than balance recorded in QuickBooks,
  6. Now go to your accounts in QuickBooks step by step and check individual item amount match or not. if not follow all the above steps until your bank statement is 0.
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