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Rios Troy

How to Reconcile in QuickBooks Online with an Easy Process

Reconciling in QuickBooks online is an important part that ensures that your QuickBooks entries align with your bank and credit card account statements. Having an up-to-date and accurate account is important for the growth of any business. The reconciliation helps in identifying the difference between the QuickBooks entries and bank statements. It is the easiest way to find mistakes, frauds, duplicate entries, or missed payments. Now that you have already understood what is reconciling in QuickBooks online, let us have a look at the reconciliation process in QuickBooks online.


How to Reconcile in QuickBooks Online?

There are various accounts in a company. It is important to reconcile all primary accounts, including cash, prepaid expenses, fixed assets, accounts receivables, accounts payable, and investments. Reconcile in QuickBooks Online is a simple procedure. Let us have a quick look at the process - how to reconcile in QuickBooks online.


Step 1: Get the Statement 

The first step is to get your statement before you start the reconciliation process. So, either download your bank statement or get a hard copy of it. Also, open your transaction entries in QuickBooks online.


The reconcile page in QuickBooks online can be accessed in two ways:


  • Open your QuickBooks online, click on the accounting, and then select the Reconcile option. 
  • Log in to your QuickBooks online, click on the gear icon, select tools, and then pick the Reconcile option.


Step 2: Start the Reconciliation Process 

Once you have your bank statement, you can start the reconciliation in QuickBooks Online. If you are reconciling for several months, then you need to start with the oldest statement and work in the backward direction. 


When you open the Reconcile Page in QuickBooks online, you will see the question, “Which account do you want to reconcile?”. From the drop-down list, select the accounts that you wish to reconcile and press the Reconcile button.


 

Step 3: Mention your Information 

In the reconcile window, you will notice three fields, namely, beginning balance, ending balance, and ending date. Provide the information correctly. After you have mentioned all the information correctly, click on the Start Reconciling button.


Step 4: Match and Clear Transactions 

Now, the real process begins. Go through the transactions on your bank statement one by one, match the details, and click on the circle at the end of the line. Mark the transaction as “cleared” if the details match, and the cleared amount will be subtracted from the difference displayed at the top of the screen.


To find the transactions easily, you can apply filters such as payments, deposits, Transaction type, date, Payee, and more.


Step 5: Repeat the Process until the difference is “Zero”

You need to repeat the process for every transaction until every transaction is checked off. At the end of the process, the difference must be “Zero.” If there are some discrepancies, i.e., the difference is not zero, then you need to find out the reason behind it. There might be some transactions that are missing, then add that transaction. 


You can pause your work in between by pressing the save for later button and resume your work. When all the entries are in order, you will get a successful message.


Step 6: Repeat 


You need to repeat the same process for every account.


Final Thoughts


Reconciling in QuickBooks online is a crucial thing that needs to be performed monthly or quarterly. Hopefully, this blog explains to you how to reconcile in QuickBooks online easily. You can talk to our QB specialist in case of any problem.



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