Get better bookkeeping accuracy in QuickBooks with Reconciliation

QuickBooks is a great tool for keeping track of your income and expenses, whether it is for your business or personal finances. But how accurate are your financial reports at any given time? One way to make sure you are keeping your books accurately is to use the Reconcile tool.

As you are probably well aware, as each month ends, your banking institution will issue a bank statement to you. This statement shows quite a few things. It should show what your bank accounts beginning balance was at the first of the month, the ending balance as of the last day of the month, any deposits made, and any auto withdrawals or checks cashed from your account during the given month. Our goal here is to take the statement issued from the bank and make sure what has been entered into QuickBooks for that same month matches.

Here is how to reconcile in QuickBooks – specifically from QuickBooks for PC. From the home page of QuickBooks, there will be a “Reconcile” icon in the Banking section on the far right. You can also access the “Reconcile” tool from the task bar, under “Banking” and “Reconcile.” When choosing the icon, a pop up box will appear asking you to choose the following:

  • What bank account you plan to reconcile
  • The statement’s ending date
  • The ending balance for that given statement

Once those items are entered and you choose to continue, a new screen will appear that lists all transactions that have been entered by you into QuickBooks. On the left will be the checks and payments – money going out – and on the right are the deposits and other credits – money coming in.

You will want to go through your bank statement and match up each item, check marking them in QuickBooks as you go. Once you have accounted for each item in QuickBooks that appears on your bank statement, the “Difference” amount in the bottom right corner should show zero. At this point you can choose the “Reconcile Now” button to complete the process. QuickBooks will offer you reconciliation reports for your records, which you can print and save for future reference.

There are several things that reconciling in QuickBooks with your bank statement can help you do. If you missed entering any items, you can easily catch it by seeing it on your bank statement and making sure to enter it after the fact. Reconciliation can also help you see if you may have accidentally entered something with the wrong amount, or even double entered the same transaction.

By reconciling your accounts in QuickBooks with your bank or credit card statements on a regular basis, you are making sure your bookkeeping is accurate and clean. This is especially important for when tax time comes around, or if you need to provide an outside party with financial statements.

As you use the Reconcile tool you may have questions or issues that you need help addressing. Please feel free to contact us. Also, if you have a different version of QuickBooks please feel free to contact us for further assistance in how to reconcile. There are several QuickBooks Pro Advisors at our firm that would love to assist you.