If you ever need accounting software for your small business, you must be familiar with Quickbooks. With the tax season constantly following you, Quickbooks is the safest prime option to handle your bookkeeping as well as accounting. However, some of the common questions asked include “How to do bank reconciliation in Quickbooks?” If you’re one of those users, look no further as this blog will tell you just that. Just like balancing your checkbook, you need to review your accounts in QuickBooks to make sure that they match your bank and credit card statements. This process is known as reconciling. Abide by these steps to learn Quickbooks bank reconciliation on different devices.
How to reconcile in Quickbooks on Desktop?
In order to learn how to do bank reconciliation in Quickbooks, read the steps hereinafter:
- Review your opening balance- Before starting the account reconciliation process, make sure you backup your company file. In case you are reconciling an account for the first time, review the opening balance.
- Prepare for the reconciliation- Make sure to enter all the transactions for the bank statements period that you plan to reconcile. In case the transactions have not cleared the bank yet and are not on the statement, wait for the period required to enter them.
- Start your reconciliation- Once you receive your bank statement, you can begin the reconciliation. If you’re reconciling for multiple months, start with the oldest bank account statement. Reconcile each month separately, one statement at a time.
If you’re reconciling a Merchant or Payments account and you are not signed in to the Quickbooks Online account, you’ll see a sign in the window. This ensures that your account is successfully linked to a verified company ID.
To reconcile, Go to the banking menu, then select ‘Reconcile’. In the Account field, select the bank account or credit card account that you want to reconcile. The statement date will be filled in automatically. Generally it’s 30 or 31 days after the statement date of the previous reconciliation. Change it as per your need to match your bank statement. Quickbooks also automatically enters the Opening Balance or Beginning Balance. It uses the ending Balance from your last reconciliation to get this amount. Enterthe ending balance on your statement then enter service charge and interest earned based on your bank statement. Do not enter the charges that you’ve already entered in Quickbooks and then review the fields. If the information is correct, select Continue or OK.
- Compare your bank statement and that of Quickbooks- Make sure you have the right dates and transactions. When you’re done reviewing your statement, you’ll know everything made it into QuickBooks. Match your transactions and you’re done.
- After you reconcile, you may print it for further ease. If you don’t know how to print a bank reconciliation in Quickbooks Online, just go to the Reports menu and select Reports Center. Search and Open the Recomcili report you want to print. Select the account then click on either Detail, Summary or Both. Select Display and then click on Print to print it.
And that’s it for Quickbooks Online Bank reconciliation on Desktop.
How to reconcile in Quickbooks on iPad or iPhone?
To learn how to reconcile Quickbooks Online on your iPad, make sure you have your bank statement in hand. Then click on the gear icon on the top left of the home screen and select the reconcile option. On the reconcile page, choose the bank account that you want to reconcile from the drop down menu. Once you’ve selected your account, enter your ending balance and ending date of your bank statement. Then click on start reconciling. On this page check your transactions in your bank statement. Using your bank statement as a source of truth, take off the transactions that are correct in Quickbooks. When the balance matches your bank statement click on done. This is how you reconcile Quickbooks Online on your iOS.
Next we have How to reconcile in Quickbooks on Android:
- Open the Quickbooks mobile app, see that your company Activity Screen lists all your activities. To add a new activity tap the plus icon (+)
- Tap the activity you want
- The menu gives you quick access to the company contacts, transactions, reports, help and settings.
- You can review and reconcile your bank transactions. On the menu, tap Banking. If you want to
- In case you want to exclude any transaction, go to Menu and then select transactions
- Select the transaction you want to exclude and then select exclude transactions.
And that’s how to reconcile in Quickbooks Online on your android device.
How to reconcile in Quickbooks on Mac?
- Open the web browser.
- Open the Quickbooks website and log in.
- In the home screen click on the options menu.
- Select transactions.
- Match the transactions with your bank statement by including or excluding transactions as needed.
- Click save.
It can be stated that Quickbooks makes reconciliation of bank accounts much easier than using the traditional accounting methods. If you’re using the traditional method you will have to Start with the bank statement as already mentioned. Gather all your business records like your company’s ledger, or books. Then, go over your bank deposits and withdrawals. Check the income and expenses in your book manually. If it matches, you are already reconciled but if it doesn’t, adjust the bank statements in such a way that they do. First compare that the total number of expenses are the same on your bank statement, Adjust the cash balance. Compare the end balance. All of this is quite the hassle but it is safe to say that learning how to reconcile in Quickbooks online is much easier than the traditional method.
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- Where is the Gear Icon in QuickBooks?
- How can I delete a deposit in QuickBooks?