Quickbooks software allows users to link their bank accounts in the software itself to easily track the list of transactions in their business. The Reconciliation feature of Quickbooks allows users to match transactions with their bank accounts and credit card statements. The reconcile process allows the users to cross-check the user-generated transactions in the Quickbooks Software. you must process the reconciliation process in your Quickbooks accounts on a weekly basis to avoid any kind of discrepancies.
Below listed are some of the factors that you have to consider while reconciling the quickbooks account.
- Complete list of Transactions in your Quickbooks Desktop accounts that include Banks Feeds, Payments, deposits, etc.
- Browse through all your documents and match the ending balance of your Quickbooks Account with your bank’s actual balance.
- Make sure to Take a backup before processing the reconciliation process.
- Ensure that the beginning balance of Quickbooks Account and your credit card statement or bank statement is the same.
- Keep the credit card statement or bank account statement for the reconciliation process.
- Check all the transactions which are incomplete or Undue in the Quickbook Desktop.
Steps to Reconcile Transaction in Quickbooks
Follow the steps mentioned below to start the reconciliation process. Open the reconciliation window and follow the process.
The Reconciliation Window
Go through the reconciliation window and provide all the required information to start the reconciliation process. You need to select whether you want to reconcile the transactions with your bank or credit card statements. Make sure to review your data before moving to the next steps to avoid any kind of error.
Start the reconciliation process by clicking on the Reconcile option in the Banking Menu.
- Enter the Account details in the Accounts field.
- Once you will update, you will be able to see the statement date. You can change the statement data as per your requirements. In general, it normally sets for 31 or 30 days after the last statement date.
- Ensure the beginning balance of your Quickbooks account with the Bank statement. It is calculated by adding all the cleared transactions.
- Check for the ending balance in the statement and Enter it in the box.
- Now look for the extra charges such as interest earned or service charges which needs to be updated. Update these charges in the Interest earned and services charges sections. Make sure to not update a transaction twice in the Quickbooks account.
- After this, choose the locate discrepancies option to check the local reports of discrepancies and any reconciliation issues in your Quickbooks account. You can also restart or undo the reconciliation process with the options on Locate discrepancies option.
- If you have any issue and need to go to the last transactions then click on the Undo reconciliation option.
- If you have verified everything is accurate and choose the continue option on the reconciliation window.
the reconcile screen will be open on the desktop. Make changes to the transactions as per your account statement. If you have selected all the transactions and the screen is not showing any value then you can click on the reconcile process. Below listed are some of the filters that you can use to reconcile the transactions precisely.
- Filter Transaction based on End Date In case you want to see the transaction with the statement end date only to avoid any confusion then you can mark the “Hider transaction after statement End date” option.
- List of Transaction: The transactions in the reconcile screen are divided into two sections- the checks/ Payments for the money sent and Deposit for the money received. While reconciling Quickbooks account with a credit card, Charges, and cash advances section for all your purchases and Payment/Credit section for the amount paid to the credit card company. Check for all the transactions that you have on your account statement of bank or credit card. Make sure to click on the transactions only that are on the list. Notice the change in the cleared balance field whenever you select a transaction.
- Cleared Items: This section will save you a lot of time by checking the discrepancies in the cleared items. Here, a List of all your deposits and total number and amount of all your deposits and checks will be available. Even some banks provide similar statements.
- Mark All/ Unmark All: you can use the Mark all/ Unmark all option to select and deselect all the transactions at once. If you reconcile on a daily basis and all the transactions are accurate then this feature can save you a lot of time. Make sure the ending and clearing balances are equal in the reconcile screen window.
- Go to: Click on this option if you need to modify the transaction to remove the discrepancies issue.
- Matched: Click on this option, In case, you are reconciling with bank statements. It will automatically select all the matched transaction from the list.
- Display: Click on the display option to view the required fields.
- Click on the Modify to make any kind of modification in the Reconciliation window.
- Click on the leave now option to close window.
- If you have checked all the transactions properly then click on the reconcile now option.
So this was all about how you can reconcile transactions in Quickbooks. In order to use Quickbooks software on multiple devices then you can use the Quickbooks Remote Access tool to set up the multi-user access.
If you have any queries related to Quickbooks software then contact the experts at Quickbooks.