The account reconciliation process ensures that your company’s bank transactions are entered correctly into QuickBooks. The process includes matching the ending balance from the previous month’s bank statement to the starting balance of the current month’s statement. Reconciliation also matches the QuickBooks register’s ending balance with the ending balance of the bank statement. If the amounts do not match, there is a transaction input error somewhere in the QuickBooks file. If you do not locate and correct the issue, the error can directly impact your final profit and loss report, as well as cause discrepancies for all subsequent account reconciliation efforts.
- Click “Banking” > “Reconcile” from the top menu bar of the main QuickBooks program window.
- Click to select the bank account you want to reconcile from the drop-drown menu.
- Locate the “Beginning Balance” amount in the menu screen. The beginning balance should match the ending balance of your last reconciled bank statement, as well as the beginning balance of the subsequent statement. If the balance does not match, you will need to locate and correct the transaction causing the discrepancy.
- Click “Locate Discrepancies” and select “Discrepancy Report” to view the transactions that may be causing the bank balance discrepancy.
- Refer to the discrepancy report to locate the transaction that has been input incorrectly. If the incorrect transaction occurs within a previously reconciled bank account, click “Undo Last Reconciliation.” Click “Continue” at the prompt to confirm. The transactions previously marked as cleared will revert to uncleared status and can be edited in the transaction register.
- Click “Banking” > “Use Register” to access the individual bank transaction register. Verify that each transaction matches the bank statement and that every transaction on the statement is accounted for in the QuickBooks account register.
- Double-click the transaction that is causing the discrepancy and correct the date or dollar amount to match your bank statement. Select “Save and Close” when you have corrected the transaction.
- Click “Banking” > “Reconcile” to return to the “Begin Reconciliation” menu. Verify that the bank balance is now correct. Reference the bank statement that coincides with the last Quickbooks reconciliation date.
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