Reconciliation in Quickbooks Desktop
The process of reconciles ensures that the transactions updated in Quickbooks records match the transactions in your bank statement and credit card statement. Hence, It is advisable to reconcile Quickbooks software on a daily basis to avoid any issues with the transactions. If you are new to Quickbooks, then follow this blog. we will explain below how you can reconcile transactions in Quickbooks Desktop.
However, while performing the reconciliation process, if you have encountered any kind of connection error then you can use the Quickbooks connection diagnostic tool to troubleshoot the error in No time. It will automatically detect and troubleshoot the error.
Things to Consider before Reconciling Bank Account
- The accounting software will manage all the transactions that include payments, accounts, and fees.
- the actual balance in your bank account and then Quickbooks register will match.
- make sure to create a backup of the company file to avoid any kind of data loss.
- check the beginning balance in the Quickbooks Account, make sure it matches with your bank or credit card beginning balance.
- Update all the transactions for the selected time period.
- Keep a copy of the record of your bank or credit card statement.
Steps to Reconcile Transactions in Quickbooks
Reconciliation Window in Quickbooks
Here you will be required to select the account with which you want to reconcile the Quickbooks account transactions. you need to select either the Credit or Bank Account at the reconciliation window before proceeding to the next tips. after selecting your account, you will be able to review all the information regarding the selected account. make sure to ensure all the details are correct before leading to the next steps.
To open the reconciliation window in Quickbooks, Click on the banking menu and then choose the reconcile option.
- Now choose the type of account or credit card option you want to reconcile with the transactions in Quickbooks. go to the accounting field and select the account.
- once you will select the account, the statement date will be displayed on the screen. you can change this date as required.
- the beginning balance will be displayed on the screen as well. make sure the beginning balance is equal to the opening balance in your statement. the balance is the sum of all the previously cleared transactions.
- Now fil the ending balance from your bank statement.
- Now check your transactions if there are any service charges or interest earned that you haven’t updated in Quickbooks transactions. if there are any charges then update it in the service charge and interest earned field. Make sure to not repeat any transactions.
- Now click on the Local Discrepancies option to have a look at the reports that will help you to determine any kind of discrepancies or any kind of reconciliation issue in Quickbooks. here you will be able to undo or restart the reconciliation process if you have encountered an error.
- If you have made a mistake and need to reverse the reconciliation process to fix the error then click on Undo reconciliation.
- ensure all the details are filled properly, then click on Continue option to go to the reconciliation window.
Requirement of Undo Reconciliation
the undo reconciliation feature will be required when you won’t be able to locate discrepancies during the reconciliation process or while changing the opening balance of the account in Quickbooks. Once you will click on the undo reconciliation option, it will take all the previously cleared transactions is unclear, and the beginning balance will show the past beginning balance again.
here you will get the features and options to refine the reconciliation process with your bank account or credit card statement. here you have to select the transactions to clear. if you have selected all the transactions and it’s showing no difference then you can click on the reconcile option to complete the reconciliation process.
- Hide Transactions: While processing the reconciliation process, you can mark the hide transactions checkbox to filter the transactions of the selected period only. It will help you to filter the transactions that are required for the reconciliation process.
- List Of Transactions: The transactions in Quickbooks desktop are listed in two different ways that are checked/payment or deposits/other credits. if you have selected the credit card while performing the reconciliation then you will get Charges and Cash advances for the purchases and payments/Credits for the amount that has been paid to the credit card company. Now verify the transactions on Quickbooks and the bank statements. Select the transactions that are present on the statement only, you will notice that the cleared balance will change.
- Items You have Marked Clear: here you will be able to see the list of all the checks and payments that you have selected. even some banks provide statements with this also. It will help you to trigger the discrepancies.
- Mark All/ Unmark All: These options will allow you to mark and unmark all the transactions in once. it will save you time if you are performing reconciliation on a daily basis. Make sure the difference between the ending and clearing balance is zero in the reconciliation window.
- Go to: If you are required to make any kind of changes in the transactions then you can use this option to edit.
- Matched: This option will help you to select all the transactions that are downloaded and auto-matched while reconciling for a bank account.
So these were some of the features of the reconcile window. If you want to know more about these in detail or need any kind of assistance then you can contact Professionals at Quickbooks. They will help you to understand how you can perform the reconciliation process.