QuickBooks gives you various features which allow you to make your accounting accurate and one such unique feature of QB is the availability of reconciling your accounts. This feature allows you to find errors in your transaction and helps you to manage your accounting records in a better way.

So, in this article, we have mentioned everything which you need to know about QB Bank Reconciliation, so that you can make the most of this feature.

What is Reconciling?

It is the process of matching your transactions which you have entered in QuickBooks with your bank or credit card Company’s record. To make your accounting records accurate, it is highly recommended to reconcile your bank accounts because it helps you to find the accounting errors with much more ease. Moreover, it helps you to make sure that all your payments, deposits and bank fee are accounted for in QuickBooks. It also allows you to match all your entries in QB with what you have in your bank account.

What are the major advantages of your QuickBooks Bank Reconciliation?

• It will help you to wipe out your accounting errors by making your bookkeeping in QB identical to what you have in your bank account.
• You will have all the details of the items which are cleared in the bank account and those which are still pending.
• Listing of all your transactions of bank statement in QB
• Better management of Accounts receivable

What you need to do before reconciling your bank account?

• Maintain a backup of your QuickBooks files
• The statement of bank and credit should be set in QuickBooks with the right beginning balance
• All uncleaned transactions must have been entered
• Have a copy of your bank and credit card statement.

How to reconcile in QuickBooks?

• Click on the Gear button and then choose the Reconcile tab from under the Tools
• From the drop down list, select the type of account which you want to reconcile.
• After selecting the type of account, click on Reconcile Now
• Now from the copy of the bank statement, make a note of ending date and ending balance amount.
• Enter your statement end date in QB from the calendar drop down menu.
• Enter your Ending date and click on OK.
• After making sure that the difference value is zero, click on Finish Now

How to examine Reconciliation reports?

•  From the reconcile menu, click on the reconciliation which you have entered.
•  After that, click on Run Reports, to get a detailed report of your reconciliation.

What is the ideal routine for Reconciliation?

You should reconcile your QB accounts on a monthly basis but if you have bigger businesses with numerous transactions and statements, then the process of reconciliation should be done more often.

QB reconciliation is very much necessary for maintaining accurate accounts and that’s why you should follow a monthly reconciliation of your accounts.