Why should you reconcile?
You probably understand the value of balancing your checkbook. At the end of each month you look at the statement your bank sends
you and see if it agrees with the record you kept in your checkbook register. This way, you can see if the amount you think you have
in your checkbook is accurate and that you haven’t left any transactions—such as payments, deposits, or bank
Reconciling your accounts in QuickBooks is a lot like balancing your checkbook, but QuickBooks streamlines the process to match
your transactions and fees to those in your bank statement. When you reconcile you can add bank fees and interest, and you can see which transactions have cleared and which ones haven't. This process helps ensure your financial records are accurate.
What are discrepancies?
Anytime you reconcile your account—that is anytime you match your QuickBooks account to your
bank statement—you may discover transactions in an account that don't agree with your printed statement. These mismatches are known as discrepancies. Finding and fixing these discrepancies will balance your accounts and allow you to see a more accurate financial picture.
Any account for the first time
A bank account (savings, checking, money market, etc.)
A credit card account
discrepancies with a reconciliation report
a report from a previous reconciliation