Why is it Important to Reconcile your Bank Accounts?
Like your personal bank accounts, it is important that you reconcile your business bank accounts on a monthly basis. Reconciling is the process of matching the transactions on your bank statement to what you have recorded in QuickBooks.
Reconciling your bank accounts regularly will help to ensure the following:
Any discrepancies between your records and the banks are resolved in a timely manner (e.g. a bank deposit that was posted to the wrong amount by the bank).
Timely notification of any fraudulent transactions. For example, if you notice transactions listed on your bank statement that you did not authorize, you can notify the bank as soon as possible so that they can investigate.
What are the Benefits of Reconciling your Bank/Credit Card Accounts in QuickBooks Online?
Some of the benefits of reconciling your bank account in QuickBooks are:
All transactions on the bank statement get recorded in QuickBooks.
Your financial statements such as theProfit & Loss statement and Balance Sheet are up-to-date.
All of the reconciled transactions are marked in QuickBooks as cleared.
You are able to run bank reconciliation reports that will provide the details of the items that have cleared the bank and those that remain outstanding (uncleared).
How Do I Reconcile my Bank/Credit Card Account in QuickBooks?
Before you follow the steps to reconcile, be sure that you have your bank/credit card statement handy for the account that you want to reconcile. We will refer to the bank statement often during this process.
Here are the steps to bank reconciliation in Quickbooks Online:
After you choose what you’re going to start with, you will follow the same steps for each.
The deposits that I am choosing are the items that appear on the statement for the month that I am reconciling. It is very possible that you will have items from other months, depending on when you’ve imported the information, and the duration between account reconciliations. After you’ve completed all of the deposits, you will proceed to Payments, and complete them the same way.