Quickbooks
Bank Reconciliation

Quickbooks bank reconciliation is very important especially when you want to match your bank statement and your Quickbooks account. There are two types of account that you would normally reconcile. Your bank account and your credit card account.

Whenever you do a bank reconciliation in Quickbooks, keep in mind that you always need your bank statement or credit card statement. The very reason that this is where you're going to compare your Quickbooks account balance and see if they are matching up.

To reconcile a bank/credit card account:

  1. Click Banking menu.
  2. Click Reconcile.
  3. The Begin Reconciliation window appears.

Begin Reconciliation

Here are some parts of the Begin Reconciliation window:

  • Account - Choose here the bank or credit card account that you want to reconcile.
  • Statement Date - This should be the same statement date that you have in your paper statement.
  • Beginning Balance - Your beginning balance should match the beginning balance in your paper statement. If it doesn't match you can click the link "What if my beginning balance doesn't match my statement?".
  • Ending Balance - Enter here the ending balance that you see in your paper statement.
  • Service Charge/Interest Earned - If you have any service charge or interest earned in your paper statement you should enter it here.
  • Locate Discrepancies button - This will help you find any discrepancy that you might have in your account. This is where you normally go when your beginning balance doesn't match the beginning balance in your paper statement.
  1. Click the Continue button. The Reconcile window appears. You need to click either the Checks and Payments (left side) or the Deposits and Other Credits (right side) and select the transactions that you have for this statement. Always remember that the transactions here should match the transactions in your paper statement.

Reconcile

  1. Before you click the Reconcile Now button, the Difference should be 0 (zero) because if not then it means that there's something wrong with your account (your Quickbooks account doesn't match your paper statement account).

Important notes related to Quickbooks Bank Reconciliation

  • Do not proceed with bank reconciliation in Quickbooks if the beginning balance in the Begin Reconciliation window does not match the beginning balance in your bank/credit card statement.
  • Do not edit any transaction that has been already reconciled. This will cause a discrepancy in your account and you will have different beginning balance.
  • It is not recommended to Enter Adjustment just to balance the difference that you have in your account. But if you're sure that you really need to enter an adjustment then go ahead enter an adjustment.
  • It is a best practice to always reconcile your account as you receive your bank/credit card statement so that your Quickbooks account is always in balance with your paper statement.