How To Reconcile in QuickBooks?
In every business, there are a lot of transactions, debit and credit, that has to be made to run the business operations appropriately. The transactions include purchasing inventory, payment to the vendor, bills receivables, payment received by customers, etc. But when you connect your QuickBooks account with your bank account, it isn’t necessary that both the transactions record simultaneously. There is a feature in QuickBooks called Bank Reconciliation that will help you to reconcile your bank statements. Some users get a QuickBooks Bank Error 101 in QuickBooks while reconciling.Bank Reconciliation in QuickBooks
Bank Reconciliation plays an important part in QuickBooks. Bank Reconciliation means to reconcile your bank account statements with your QuickBooks statements. This is necessary to avoid any further confusion and conflicts in your bank records. Ideally, you must reconcile your bank statements monthly. This will lead to a healthy business.Some do this process at the end of the year but that will only create chaos in the balance amount. Generally, your accountant has to reconcile your bank statements with your bank account. You might reconcile your current account, savings account, credit card accounts, checking accounts, etc. Some users reconcile their current assets and current liabilities accounts too.
The Procedure to Reconcile in QuickBooksBelow given is the detailed procedure that helps in reconciling in QuickBooks:
Open your QuickBooks.
In the left-side panel, click on the ‘Accounting’ option.
After that, choose the ‘Reconcile’ option.
Now, from the drop-down menu, select the account that you want to reconcile.
If you get an error message that says your account is not yet ready to reconcile. There should be an option under this message, click on that. The issue might be related to the QuickBooks Reconciliation Discrepancies.
After the issue is resolved, go back to the reconcile page.
You will see the two options ‘Summary’ and ‘History by account’.
In the ‘Summary’ section, you will see the previous reconciliation that is made with this account.
In the ‘History by account’ section, you will see the reconciliation window.
Here, there will be ‘Ending Statement’, ‘Opening Statement’, balance, auto adjust, etc.
Go back to the ‘Reconcile Page’.
Click on the ‘Reconcile Now’ option at the top of the page.
There are three main fields i.e, Beginning Balance, Ending Balance, and Ending Date.
Adjust the Date for which month you are reconciling.
After that, click on the ‘Start Reconciling’ option.
Match all the transactions and clear off the transactions from the statement.
Clear off the transactions until the balance comes to zero. The main aim to reconcile bank statements is to get zero balance in the comparison of bank statements and QuickBooks account statements.
Make sure that the ‘Difference Field’ or balance will come to zero.
Click on the ‘View Report’ option.
After that, choose the ‘Done’ option.
The above article is based on the information regarding How to Reconcile in QuickBooks. You may also need to make a QuickBooks Undeposited Fund Account manage your business’s undeposited funds records. If you face any problem in following the above steps, you can reach out to the QuickBooks Error Support professionals on this number anytime: +1- 877- 349- 3776.Read more Related Articles:-