Reconciliation is an important accounting step which makes sure that data present in your books are accurate. Most often, two financial documents are cross referenced to check whether the transactions appear accurately. To reconcile in QuickBooks online, you need a bank statement and all your accounting data. In this article we will look at the necessary steps required to reconcile in QuickBooks online.
Benefits of Reconciliation:
- Ensures accuracy of accounting data.
- Can help in identifying multiple entries of a transaction.
- Can help in identifying cases of internal fraud.
To Reconcile in QuickBooks Online, Follow the Steps Provided Below:
- Log into QuickBooks Online.
- From the Gear muny, select Reconcile from under the tools column.
- Select the accounting that you would like to reconcile.
- Hit Reconcile now.
- Download and open a copy of your bank statement with which you want to cross reference transactions.
- Enter the ending and beginning date provided on the bank statement into the Start Reconciling window.
- Enter the ending balance for the statement.
- Cross reference each and every transaction from the bank statement with the transactions present in the account.
- Mark the checkbox beside the transaction, if the transaction appears on the bank statement.
- Once you’re down cross referencing transactions, click on Finish Now.
You’ll know that you’re finished with the reconciliation when the difference is shown to be 0. This is a tedious process and requires manual tallying of each and every transaction. Still, there is nothing worse that inaccurate accounting data, which account reconciliation will help you in avoiding.
In QuickBooks Online, you also have the option to examine the work you did with a reconciliation report. This report is automatically generated after you finish reconciling an account in QuickBooks online. This report will have all the details about the reconciliation including duplicate transactions and transactions that were not found.
You can either get the bank statement by visiting your bank or download it on your system. When downloading the bank statement, make sure that it is in a valid excel format. Other than this, you also have the option to connect your bank account with QuickBooks online and directly import the bank statement into QuickBooks.
QuickBooks Features that Simplify Reconciling Accounts
There are multiple features in QuickBooks that can help you in reconciling accounts. Some of these features have been mentioned below:
For the first time, QuickBooks now officially support multiple monitors. You can open separate windows on QuickBooks on different monitors. This will significantly simplify account reconciliation if you’ve directly imported the bank statement in QuickBooks. For now, QuickBooks only supports 3 monitors at once.
This inbuilt chat tool was modified further and can be used for efficiently collaborating over accounting tasks when using QuickBooks in multi-user mode. This is a fairly simple tool to use and simplifies the entire reconciliation process.
With RepairContact, you have the option to avail QuickBooks technical assistance anytime, anywhere. Further our QuickBooks experts can help you in reconciling your accounts.
We also provide QuickBooks remote support through which our technical and accounting experts can help you through these features of QuickBooks. Our QuickBooks help team is available round the clock. To know more, feel free to contact QuickBooks technical helpdesk at ✆+1-800-272-4169(Toll Free)