How to Reconcile in QuickBooks Online?
As we all know, QuickBooks is the most utilized accounting program due to its amazing features. QuickBooks also helps to compare two related accounts for accuracy, and this process is called reconciliation. It’s like you are balancing your checkbook as same you have to do in QuickBooks to review the accounts. The reconciliation process is mainly processed in QuickBooks Online. It seems to be a new thing to users that they don’t know How to Reconcile in QuickBooks Online. To provide the answer, we came up with this blog, which provides you with everything about reconciliation. This also helps you to reconcile your bank accounts in QuickBooks Online. But before proceeding, let’s know more about the reconciliation.
What is Reconcile in QuickBooks Online?
Reconciliation is reviewing your accounts in QuickBooks Online to ensure they are accurate and match your credit card and bank statements. Or you can say it is a QuickBooks Online module, exclusive from where you review and check your charts of accounts and bank feeds in QuickBooks Online. That how to reconcile in QuickBooks Online takes place.
To ensure that accounts match real-life bank accounts, users have to reconcile their credit card and bank accounts in QuickBooks Online.
You will easily compare each transaction when you have the bank statement with the transaction entered into QuickBooks Online. When everything matches, then you will be notified that your accounts are accurate and balanced. You should reconcile your saving and current accounts, and credit card accounts every month. Now, let’s know how QuickBooks Online reconcile works.
How Reconcile Works in QuickBooks Online?
Before beginning the how to reconcile in QuickBooks Online procedure, know it’s working. In the reconciliation process, you compare your bank statements to check in QuickBooks online for a specific time period. You have to be sure that the bank statements match, and the difference between the bank account and QuickBooks should be $0.00. If not, then there will be some small gaps in processing payments.
How to Reconcile in QuickBooks Online?
In this section, we are going to know how to reconcile bank accounts in QuickBooks online without any confusion. Here we go:
Step 1: Check Opening Balance
It is the first and main step to review your opening balance when reconciling the bank for the first time. In this, you have to match the real-life bank account balance of the decided day to begin the tracking of the transaction in QuickBooks: Following are the steps:
- Firstly, go to Settings.
- Secondly, choose Chart of Accounts.
- Then, search the Account and then choose View Register.
- Now, search the Opening Balance Entry. You can also sort the date column to view the old entries first.
- After that, click on Opening Balance Entry.
- Next, edit the Date and then the Amount. You can adjust your changes by clicking on the Edit option.
- Finally, click on Save.
Important: QuickBooks downloads all the transactions automatically and enters the opening balance for you whenever you connect the credit card and bank to online banking.
After reviewing your opening balance, follow the next step of how to reconcile in QuickBooks Online.
Step 2: Initiate Reconciliation
You can begin the reconciling process easier when you get your monthly credit card and bank statement. If you want to reconcile multiple months’ statements, then combine them into one statement with the oldest one at the time of starting: Following are the steps for how to reconcile in QuickBooks Online:
- Firstly, ensure that you match and categorize all the downloaded transactions when your accounts are connected to Online Banking.
- Secondly, from QuickBooks Online, you have to click on Settings and then choose Reconcile. If you are doing the reconciling for the first time, then click on Get Started to proceed.
- Now, using the Account dropdown, choose the account to reconcile. Ensure that the account is the same on the statement.
- Important: If the previous reconciliation message appears, click We Can Help You to Fix It. You have to resolve this before you start How to reconcile in QuickBooks Online.
- After that, check the Beginning Balance. Ensure that the beginning balance in QuickBooks is exactly the same as on your statement.
- Next, provide the Ending Date and Ending Balance on your statement. Some banks pronounce the ending balance as “Closing Balance” or “New Balance”.
- When you see it, check the Last Statement Ending Date (Lat Reconciliation End Date). You present the bank statement start the day after.
- Finally, click on Start Reconciling.
Step 3: Compare Your Statement
In the next step of How to reconcile in QuickBooks Online, we are going to compare the statements with the QuickBooks. For doing, go over them one by one. The hard part is to ensure that you have the right transaction and date in QuickBooks, which helps you match everything.
Step 4: Review Past Reconciliation
In this section, we will run a reconciliation report to check the work has been correct. Following are the steps:
- First, select Accounting or Bookkeeping.
- Then click on Reconcile and choose the History by Account option.
- Now, by using the dropdown, choose the account and date range.
Now, you finally know how to reconcile in QuickBooks Online. But what if you want to undo the reconciliation in QuickBooks Online? For that, you can go to the next section.
Also read,- QuickBooks download
How to Undo Reconciliation in QuickBooks Online?
In this portion, we will explain to you how to re-reconcile in QuickBooks online or can, say, undo reconciliation. Following are the steps:
- In the initial step, go to Accounting.
- Then, go for the Chart of Accounts option.
- In the next step, search for the transaction account and click on View Register.
- Now, Choose the Transaction to be unreconciled.
- If the transaction is reconciled, then you can see an “R” on the screen.
- After that, Click on Checkbox, and do this until the checkbox goes blank. It will clear all the transactions from the reconciliation.
- At last, click on Save.
Reconcile is the best process to check and match all the credit cards and bank accounts with QuickBooks Online. It will help you get all the accurate transactions. If you match them properly, then the result will be $0.00. It is mandatory to do a reconciliation monthly to get the statement accurately. However, if you are confused about how to reconcile in QuickBooks Online after following the above, contact our ProAdviosrs through Email or Live Chat for an immediate solution. Thank You!