How to Reconcile Bank and Credit Card Accounts in QuickBooks?

Many people call QuickBooks as a smorgasbord of benefits and accounting tools and yes, it is true that the QuickBooks accounting software has a wide array of accounting tools and other benefits which have been developed to satisfy the accounting needs of all the businesses.

From the profusion of accounting tools offered by the QuickBooks, reconciliation is another art- work from the developers of the software, because it acts as a big relief for small and medium- size businesses.
Reconciliation is a simple process of matching your bank accounts or credit card company record with the transactions that you have entered in the QuickBooks. This practice allows you to identify mistakes in its early stage and be more accurate with your account and financial data.
So, here, we will discuss the reconciliation process of QuickBooks in detail and get to know about it in brief.
The Process of Reconciliation
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When you will start the reconciliation of your bank account, then you will see two screens on your QuickBooks desktop. The first one is going to be the begin reconciliation window and the second one will be the reconcile screen​

The Begin Reconciliation Window
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You select the account which will be reconciled in this window. You need to make sure that all the information on this screen is correct before moving to the next step.

• In order to go the reconcile screen, you will have to click on the Banking menu and then choose Reconcile.
• Now, in the Account field, you will have to choose the bank account which you want to reconcile.
• The Statement date will be filled already on an automatic basis. If you want to change it, then you can do so.
• The Beginning balance will also be filled in but make sure that it is same to the opening balance of your statement.
• Now, in the Ending balance, put the corresponding balance from your statement.
• After that, you will see a service charge and Interest earned section in the financial statement. Fill them without any error.
• Then, you will have to click on Locate discrepancies in order to find issues with your reconciliation.
• If you wish to undo your last transaction then you will need to click on the Undo Last reconciliation.

The Reconcile screen
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In this first window of reconciliation, you can easily refine the choices which you want to match to your bank statement. This is the place where you choose transactions to clear. If you get a zero difference after choosing all the transactions that come to your screen, then its good as after that you just have to click on the reconcile button and you will be done with bank reconciliation of your business.

Here are the different functions and tools available on the reconcile screen:

• Hide transactions after the statement’s due date- You can use this function in order to cover the transaction covered by only statement period.
• You will also see the transactions entered in QuickBooks at the center of the screen. In order to be accurate, match the transaction with what you have in QuickBooks.
• At the bottom left of the screen, you will see the items which you have marked cleared. It will show your total amount of deposits and checks you have selected.
• Other than this, there will be four options of; Mark all, Go to, Matched and Columns to display just below the transactions you have entered in the QB at the center of the screen.
• You can click on the Modify button if you wish to have a last minute change in the transactions which you have entered in the QuickBooks.

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The bank reconciliation feature of the QuickBooks saves a lot of time and effort for the business people. It makes the lengthy process automated and thus you become much more accurate and precise with you every month financial entry and records.

Preeti

​​Preeti is a technical content writer who is currently associated with Cloudwalk. She spends most of the time of her day in the world of cloud computing and accounting software. Her vast experience in the field of cloud software and her love for IT has allowed her to become a major contributor on most of the knowledge based cloud platforms.

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