Posted on: September 10, 2020 Posted by: admin Comments: 0
Bank Reconciliations in QuickBooks Desktop

If you have ever looked at the profit that your company is making then you must have realized how important it is for your firm to maintain the books. Well, there are surely many departments of your business and you will need to dedicate the same level of time and effort in all those departments and the same goes for accounting too. If you will not be able to manage your books then you will never be able to make the most of the success that your firm is getting. And when it comes to making the most of the accounting then using the best accounting solution is the only option you will have.

Thankfully, the accounting industry has evolved a lot and now you don’t need to be a master at accounting in order to manage your books. There are many powerful accounting software solutions out there that have converted most of the accounting operations into an automatic process and this is why even small and medium-sized businesses are able to manage their books on their own and without any help from a professional accountant. You should know that currently, the most powerful accounting solution that is available in the market is QuickBooks hosting.

People have been using QuickBooks for a very long period of time but with the introduction of the cloud accounting solution, everyone shifted to the cloud. There are many functions in QuickBooks that you can use in your firm but in this blog post, we are going to talk about reconciliation only.

You should know that reconciliation is an important step that is very much necessary to practice in order to make sure that your financial data is always accurate. In the process of reconciliation, the bank transaction is matched with the accounting records in order to make sure that the books are being maintained accurately. And if you are using QuickBooks hosting then you can easily reconcile your account without any hassle. So, without any further ado, let’s go through the detailed process of bank reconciliation in QuickBooks desktop hosting without any hassle.


Reviewing of your opening balance

If this is your first time with reconciliation then you will need to make sure that you review your opening balance. You will need to assure that the opening balance perfectly matches with the real-life bank account, regardless of which date you choose for tracking.


Preparing the process of reconciliation

Before starting the process of reconciliation, you will need to make sure that you have entered all the transactions for the bank statement that you are planning to reconcile. If there are some pending transaction then you will surely have to wait for it to get cleared.


Begin the process of reconciliation

  • Move to the Banking section of your QB and then choose Reconcile.
  • Now choose the bank account that you want to reconcile in the Account field.
  • The statement date will be automatically filled but you can also change it in order to make it match with your bank statement.
  • The Beginning Balance will also be automatically entered by the software itself. The ending balance of your last reconciliation will be used in this case but it should also match with your beginning balance.
  • Enter the ending balance in the Ending Balance field as per it appears.
  • If there are any interest charges that haven’t been used by QB automatically then you can easily enter these number in the Interest Earned section.
  • Go through all the fields and if everything has been filled correctly then you can simply click on Continue.

Note-If you see that your beginning balance is not matching with your statement then you don’t need to worry as there are various ways to get rid of this issue. You can simply use the Locate Discrepancy tool or you can start from scratch as well by simply clicking on the option of Undo Last Reconciliation.


Match the bank statement and QB

In order to reconcile, all that you will need to do is to compare all the lists of transactions on your bank statement with what you have on QuickBooks. This might look like a tricky part but is necessary as well because it will make sure that have the right dates and transactions. After reviewing, you will be sure that everything has made it to your accounting software.

  • Simply begin with the first transaction on your bank statement.
  • Then try to find the same transaction in the QuickBooks window.
  • Then you will need to match both the transaction. If both the transactions are similar then all that you will need to do is to click the checkmark box just on the side of the transaction. This will reconcile the transaction.
  • You will need to compare all the transactions in a similar way with what you have in QuickBooks. Clearing or adding transactions will decrease the Cleared Balance and similarly, if you will clear or add deposit then the amount will obviously increase.
  • After reaching the end of your transaction list, the difference between your bank account and what you have in QB should be $0.00. If you are getting the same result then you will just need to click on Reconcile Now.

Note- If the balance at the end doesn’t matches then you will have basically three options. The first one is Return to Reconcile, the second one is Leave Reconcile and the third one is Enter Adjustment. You can use any of these options as per your case and situation.

After completing the process of reconciliation, you can just click on Display and then you can also Print the statement very easily. As you can see, the process of reconciliation is very easy, especially when you are using QuickBooks hosting. You don’t need to be an accounting expert in order to reconcile your account and make sure that everything is 100% accurate.

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