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Reconciling Accounts In QuickBooks

Reconciling your bank accounts in QuickBooks is one of the most important tasks you can do in order to prevent data entry errors. As you write checks, withdraw money, make deposits, and incur bank charges, each of these transactions are recorded in QuickBooks and then should be matched against the transactions on your monthly bank statement. This matching process is called reconciling. Reconciling your accounts is a key step to ensuring the accuracy of your accounting records.

BEGINNING YOUR RECONCILIATION

To begin the reconciliation choose Banking from the toolbar and then select Reconcile from the drop down menu in order to open the Begin Reconciliation window.

From the Begin Reconciliation window select the account you want to reconcile In the Account field. In the Statement Date field, enter the date from the bank statement you are trying to reconcile. Compare the amount shown in the Beginning Balance field to the opening balance amount shown on your statement. We will address how to correct differences in the Beginning Balance field in a later post. If the beginning balance is correct, then find the ending balance on your statement and enter it in the Ending Balance field. Click Continue to open the Reconcile window for the account you've chosen.

COMPLETE YOUR RECONCILIATION

When you find a transaction in the Reconcile window that matches a transaction on the statement, click the transaction to mark it as cleared. When a transaction is marked as cleared it will become grayed out and a check mark will be placed next to the transaction. For each transaction you select, verify that the amount in the Reconcile window matches the amount shown on your statement.

If some amounts don't match or if you find transactions that contain other errors, correct the transactions. If you find a transaction on your statement that is not shown in the QuickBooks list of uncleared transactions, enter the transaction now.

When you've finished selecting the transactions, look at the difference amount in the bottom right corner of the Reconcile window, if the amount is 0.00. then click Reconcile Now. You've reconciled the account with the statement. At this point, you can have QuickBooks print a reconciliation report.

If the amount is not zero. Your account does not balance for the period of time covered by the statement, and you need to correct the difference by locating the missing transaction or correcting an improperly entered amount. 

It is important to note that bank accounts are not the only accounts that can be reconciled. You can also reconcile your credit card accounts to guarantee their accuracy.  

Remington O'Dell