Keeping your booksreconciled with bank statements is a critical accounting task. QuickBooks 2024
offers a streamlined way for businesses to perform bank reconciliation and stay
on top of their finances.
Why ReconcileAccounts?
Reconciling allows you to match the transactions in QuickBooks to those that have cleared at the bank. This serves several
purposes:
Identify discrepancies between your records and bankstatements
1 - Record bank fees, interest earned, and other charges
2 - Update records for cleared checks and payments
3 - Correct errors like duplicated transactions
4 - Detect unauthorized activity or fraud
By completing regular reconciliations, you'll gain anaccurate picture of cash flow. Running a month or quarter behind on reconciliations can lead to problems.
Reconciling also allows you to record deposits in transit orchecks that still need to be cleared. This gives you a real-time view of spendable balances.
When to Reconcile
Experts recommend reconciling at least once per month. But many businesses reconcile more frequently, even weekly.
The ideal reconciliation frequency depends on transaction volume. More activity means you should reconcile more often for accuracy.
It's easiest to reconcile when you have fewer transactions to match. Breaking reconciliation into weekly or mid-month chunks prevents it from becoming overwhelming.
Preparing to Reconcile
Reconciling goes smoothest when you're organized and have all the right info handy. Gather the following:
- Recent bank statements for the account you are reconciling
- List of outstanding checks and deposits in transit
- Records of bank fees, interest earned, etc.
- Login credentials for bank account access
- Details of resolved discrepancies or errors
You'll also want to ensure transactions are properly categorized. Having a clean chart of accounts helps with clarity.
How to Reconcile in QuickBooks 2024
Here are the step-by-step instructions to reconcile accounts in QuickBooks 2024 Desktop:
Access the Reconcile Tool
Open QuickBooks and go to the Banking section
2. Click 'Reconcile' or go to Banking > Reconcile
This opens the Reconciliation window.
Select the Account to Reconcile
3. From the drop-down menu, choose the bank account you want to reconcile
4. The beginning and ending dates will populate based on available statements
5. Click 'Continue'
Enter the Ending Balance
6. Enter the ending balance exactly as it appears on your bank statement
7. Click 'Continue' again
Entering the precise amount from your statement is crucial -even a 1- cent difference will throw things off.
Identify New Transactions
8. The Reconciliation window displays transactions from boththe bank and QuickBooks
9. New transactions will be highlighted in yellow
10. Review new bank transactions against your records
11. Mark any new transactions in QuickBooks as 'Cleared'
Double-check amounts and dates to confirm transactions matchbetween platforms. This prevents incorrect duplicate entries.
Match Transactions
12. QuickBooks attempts to automatically match transactionsfrom the bank feed and your entries
13. If any are unmatched, you'll see them under 'Unmatched Transactions.'
14. For each one, find the corresponding entry and click 'Match.'
15. Repeat until all are matched between the bank and QuickBooks
Take extra care reviewing automatic matches - they are only sometimes accurate.
Reconcile Discrepancies
16. If you notice discrepancies between platforms under'Problem Transactions, ' click 'Resolve.'
17. Select the action needed to correct the issue
18. Repeat for any other discrepancies shown
Common fixes include:
- Deleting a duplicated transaction
- Adjusting the amount to match
- Moving a transaction to the correct account
Finish and Review
19. When all matches are correct, click 'Reconcile Now.'
20. Review the summary for accuracy
21. Click 'Close'
Run one final check that the cleared balance matches yourbank statement.
Handle Remaining Items
22. For pending transactions, ensure these are marked as 'Approved but Not Cleared'
23. Record any new transactions like bank fees as needed
24. Go to Reports > Reconciliation Discrepancies to see if any require adjustments
You can now review real-time spendable balances and cash flow with confidence!
Bank Reconciliation Tips and Tricks
Reconciling accounts is a foundational accounting task. Hereare some tips for foolproof bank reconciliation in QuickBooks:
- Attach statement PDFs within transactions for easy reference
- Add reconciliation notes or memos to explain adjustments
- Spot check cleared transactions to ensure accuracy
- Investigate large unresolved discrepancies - don't ignore them!
- If an account won't reconcile, look for duplicate or missing transactions
- For frequent reconciling, use the 'Quick Reconcile'feature
- Consult the audit log for details on changes totransactions
- Call your bank if all troubleshooting fails to resolve adiscrepancy
Maintaining Accurate Books
With how swiftly financial circumstances can change,businesses need to have a sharp grasp of cash flow. QuickBooks 2024 takes the hassle out of bank reconciliation, making it a straight forward process.
Reconciling won't just satisfy your accountant at tax time -it provides peace of mind and catches errors before they become major headaches. Stay in control of your business finances and the accuracy of records by adding regular bank reconciliation to your routines.
