Reconciling Your Accounts in QuickBooks

Jun 18, 2012

Although reconciling your bank statements monthly is very important, it is often overlooked in bookkeeping. Regularly reconciling your statements (preferably monthly) keeps your books on-track and accurate. And most importantly, allows you to spot a problem before it snowballs out of control.

The below steps show you how to easily reconcile your bank account in QuickBooks.
  1. In QuickBooks, choose Banking then Reconcile. This will display the "Begin Reconciliation" dialog box.
    Begin Reconciliation
  2. A drop down list is available allowing you to select which account you want to reconcile.
  3. Select the ending date of the bank statement you're using to select "Statement Date."
  4. In the "Ending Balance" box, enter the ending balance shown on your bank account statement.
  5. Fill in the "Service Charge" and "Interest Earned" boxes accordingly. Then hit "Continue."
  6. The "Reconcile" window will appear.
  7. The "Reconcile" window will display a list of checks and payments (on the left) and a list of deposits and other credits (on the right.) Mark all of the transactions that have cleared. You can mark all the transactions by selecting "Mark All."
    Reconcile Window
  8. You can click the "Modify Button" if you realize you entered any information from steps 3-5 incorrectly.
  9. The cleared balance on the lower right-hand corner should equal the ending balance. Which means the difference should always be zero.
  10. Click "Reconcile Now," but not until you are completely done and the cleared balance and ending balance are the same.
  11. Your cleared transactions will be permanently recorded. If you can't reconcile an account or can't complete the reconciliation, hitting the "Leave" button will save your current reconciliation and you can come back to it later.
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