Bank Reconciliation

How To Reconcile Your Bank Statement
The Right Way

This is the bank reconciliation, how to reconcile a bank statement in Quickbooks page.

Bank Reconciliation

On the how to reconcile bank statements in Quickbooks page, you will learn all about bank reconcile and account reconciliation.

Bank reconciliation is a necessary monthly bookkeeping task. QuickBooks makes it easier than ever with a quick and simple process that you can learn right here.

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Bank Reconciliation - Beginning Balance

You will first select the QuickBooks accounting software file in which you will be working. Then, select Banking>Reconciliation> then the account to be reconciled.

The beginning balance will be zero for a new account, or it will be carried over from a previous reconciliation. Alternatively, if this is the first month you are using QuickBooks, it was entered when you set up the chart of accounts.

Either way, it is automatically entered, and if it matches the one on your bank statement, you are good.

Initial Information

Now you should have the option to enter the statement date, ending balance, date for service charge and interest (same as statement date), and the account numbers to charge these items to. Once you have this information entered, click "continue."

Reconciling Items

After you click continue, you will see a split screen with checks and deductions on one side, and deposits and credits on the other.

Which side which is on depends on the version of QuickBooks accounting software you are using, but the columns will be labeled so you will know which is which.

If you have a lot of transactions, it can be helpful to check the box at the top that gives the option to hide all activity occurring after the end date on the bank statement you are reconciling.

Next, simply click to check off each transaction that matches your bank statement, checking each one off on the statement manually as you go.

Each item that is not checked off on the bank statement apparently did not appear in the books. It should have, so record those transactions now and check them off. Take two things first however.

Sometimes bookkeepers record a lump sum for payroll, but the banks clears individual check amounts. A payroll transit account can handle this problem easily.

Also, use credit card statements to check off credit card deposits, and then move along.

Other Discrepancies

When you are done, the ending balance on your QuickBooks file should match the ending balance on the bank statement, and the discrepancies balance in the bottom right corner of the reconciliation window should be $0.0.

If it is not, find a starting point quickly by looking at the lower left of the reconciliation window and comparing the total checks and total deposits cleared with the totals for each on the bank statement.

This can help you narrow down where to begin looking.

Balancing

Once everything is cleared, the ending balances match, and discrepancies are zero, you can prompt QuickBooks to "Reconcile Now." You will note a moment of processing and then receive a "Congratulations" message.

You can now choose to print a summary report, a detailed report, or both. It is a good idea to print both and put them with your bank statement.

If you do not, and you need a copy later, just go to Reports>Banking>reconciliation report then follow the screen prompts.

Related Products

More Bookkeeping 101

• Accounts Payable
• Accounts Receivable
• Balance Sheet
• Bank Reconciliation
  
• Chart of Accounts
  
• Profit and Loss Statement
  

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