As you write checks, withdraw money, make deposits, and incur bank charges, each of these transactions should be recorded in QuickBooks and then "matched" with the bank's records. This matching process is called reconciling. Reconciling your accounts is a key step to ensuring the accuracy of your accounting records.
Reconciliation in QuickBooks occurs within two windows: the Begin Reconciliation window and the Reconcile window.
Some things you may want to consider before you begin your reconciliation:
If this is your first time reconciling this account, make sure you've added all your transactions and your opening balance is correct.
If your beginning balance is different from the balance on your current paper statement, you may need to track down the discrepancy before you reconcile. Click Locate Discrepancies in the Reconcile window to find out how to do this by viewing different types of reports.
Follow these steps to start your reconciliation.
Reconciling your account—matching
the balances for your paper statement and QuickBooks account—is a two-step process in QuickBooks. First you'll compare the beginning balance on your
bank statement to the beginning balance in QuickBooks, and make sure the information for the account you want to reconcile in QuickBooks is correct. Then you'll
compare individual transactions and reconcile your account.
Note: If you clear a transaction directly in the account
register, the beginning
balance shown in the Begin Reconciliation window may not match the opening balance on your statement. Instead, clear transactions when you reconcile in QuickBooks so you start each reconciliation with a more accurate beginning balance.
To do this task
Choose Banking > Reconcile to open the Begin Reconciliation window.
In the Account field, enter or select the account you want to reconcile.
In the Statement Date field, enter the date of the bank
statement you are trying to reconcile.
Compare the amount shown in the Beginning Balance field to the opening balance amount shown on your statement.
If the opening
balances are different
When you open the Begin Reconciliation window and select an account to reconcile, the opening balance displayed doesn't match the ending balance from your previous reconciliation.
This issue can occur for several reasons:
If this is the first time you're reconciling this account, either no balance was entered or an incorrect balance was entered.
You may have voided, deleted, or changed the amount of a previously cleared transaction since your last reconciliation.
Occasionally, the company data file may be damaged (this isn't common).
To resolve this issue, do one of the following:
If this is the first time you're reconciling this account, correct the opening balance for the account.
If the opening balance is zero, enter the opening balance for the account.
If the opening balance is an amount other than zero, change the opening balance for an account in use.
If you think you've voided, deleted, or changed the amount of a previously cleared transaction, correct the edited transactions.
To help you find the edited transactions:
Run a Reconcile Discrepancy report.
Choose Reports > Banking > Reconciliation Discrepancy.
Select the appropriate account and click OK.
Use this list of transactions to identify the transaction(s) causing the problem.
Note: This report provides a list of transactions that were changed since the last reconciliation.
If you find a discrepancy, note both dates:
The transaction date is the date when the transaction occurred.
The Entered/Last Modified date tells you when the change occurred.
Run a Previous Reconciliation report.
Choose Reports > Banking > Previous Reconciliation.
Select the appropriate account, select the statement ending date, and click Display.
Compare this report to past statements from your financial institution and look for differences.
To correct the discrepancy, you may need to:
Enter missing transactions.
Edit existing transactions.
Undo a previous reconciliation and redo it.
Ignore the discrepancy and let QuickBooks enter an offsetting adjustment.
Contact your financial institution about a banking error.
If you've previously reconciled the account without problems and haven't made any changes to previously cleared transactions, it's possible you have data damage. Run the Verify Data utility followed by the Rebuild Data utility to correct the damage. You may also need to troubleshoot your company file for damaged transactions.
Still having problems? Visit the QuickBooks support site to search in-depth support articles or get help from a QuickBooks Support Representative.
Find the ending balance on your statement and enter it in the
Ending Balance field.
Enter any service charges or interest earned that you have not already accounted for in QuickBooks.
If the financial statement shows a service charge or interest
that you haven't yet entered into your QuickBooks records, enter
those amounts into the Service Charge and Interest Earned
Important: Don't enter charges you have already entered as QuickBooks transactions.
In the Account field for service charges, enter the name of the
expense account that you use to track service charges. In the
Account field for interest, enter the name of the income account
that you use to track interest income.
Click Continue to open the Reconcile window for the account
Finally, complete your reconciliation.
About reconciling your accounts (overview)
your accounts (reconcile)
a Previous Reconciliation report
The Reconcile window appears after you finish reviewing the information in the Begin Reconciliation window and click Continue.
Here is where you can refine the choices you want to match against your bank statement.
If you'd like to see fewer columns or add columns, click the Columns to Display button and modify accordingly.
Follow these steps to complete your reconciliation.
Reconciling your account—matching the balances for your paper statement and QuickBooks account—is a two-step process in QuickBooks. First you'll compare the beginning balance on your bank statement to the beginning balance in QuickBooks, and make sure the information for the account you want to reconcile in QuickBooks is correct. Then, you'll compare individual transactions and reconcile your account.
You should have completed all the steps to begin your reconciliation.
When you find a transaction in the Reconcile window that matches
a transaction on the statement, click
the transaction to mark it as cleared.
For each transaction you select, verify that the amount in the Reconcile window matches
the amount shown on your statement.
If some amounts don't match or if you find transactions that
contain other errors, correct
If you find a transaction on your statement that is not shown in
the QuickBooks list of uncleared transactions, enter
the transaction now.
Click the Modify button if you want to return to the Begin Reconciliation window so that you can change some of your entries.
If you are trying to look at a particular transaction on the list, click the Go To button to see details.
When you've finished selecting the transactions, look at the
difference amount in the bottom right corner of the Reconcile window:
If the amount is 0.00. Click Reconcile Now.
You've reconciled the account with the statement. At this
point, you can have QuickBooks print a reconciliation report.
If the amount is not zero. Your account does
not balance for the period of time covered by the statement, and
you need to correct the
difference or, if the difference
is not significant, reconcile anyway and QuickBooks will enter an
adjustment for you.
missing transactions during reconciliation
a Reconciliation report
If you start reconciling and realize you don't have all of the information you need, you can leave the reconciliation and finish later. QuickBooks will keep track of what you've selected so that you can finish later.
Follow these steps to save your reconciliation and come back and finish it later.
You can work in other windows to correct errors in an account
while leaving the Reconcile window open. But if you click Leave,
QuickBooks will keep track of what you've selected so that you
can finish later.
In the account register, an asterisk (*) is displayed in the
cleared column of the transactions you marked until you complete the reconciliation. The asterisk
indicates that a transaction is pending because you haven't
finished reconciling your QuickBooks account with your financial
To resume reconciling, go to the Banking menu and then click Reconcile.
In the Begin Reconciliation window, re-enter your ending balance
and any amounts you entered for interest or service charges.
Click Continue to open the Reconcile window again. The items
that you previously selected are marked with a checkmark.
Select any other items you want to include, then click Reconcile
What is my beginning balance?
The sum of all previously cleared payments, deposits, and other transactions
in the register (those with a checkmark).
What if my beginning balance and my statement don't match?
your accounts (reconcile)
a previous reconciliation
mistakes when you reconcile
Leave before you finish
Ways to remove an account
a Reconciliation report