This article addresses how to reconcile to a bank statement closing balance. A closing balance is best viewed by printing out a monthly (a month-close) PDF closing bank statement. This is because an official monthly closing statement can (but not always) calculate all of the withdrawals and deposits and sum these up onto the monthly statement. This makes it easier to resolve reconciliation discrepancies you may run in to.  Also, reconciliations to official monthly close bank statements can make it easier for an auditor or CPA to better understand the integrity of your bookkeeping maintenance.

  1. From within your QuickBooks Online company file:
    1. Click on the gear icon, then click on Reconcile underneath the Tools menu.
  2. Now within the Account drop-down menu, choose the bank account you want to reconcile.
  3. Find the ending balance on your bank statement and then enter this balance in the field called “Ending balance” in QuickBooks.
    1. It is usually more convenient to first print out all of the relevant pages on your bank statement, so you can mark your items of completion on this statement as you go through the reconciliation process.
  4. Now find the closing date as stated on the bank statement and enter this date in the field called “Ending date” in QuickBooks.
  5. Click on “Start reconciling”.
  6. On the upper half of the reconciliation screen, you will notice the following information:
    1. Statement Ending Balance
    2. Cleared Balance – this is equal to the Beginning Balance minus the total of the withdrawals and deposits. This is where you can compare your total withdrawals and total deposits as (but not always) summed up on your bank statement. This can help resolve reconciliation discrepancies.
    3. Difference (located on the right side) – this is the field you really want to pay attention to as this is the main indicator of whether or not you have completed the reconciliation process. Once you have a zero dollar difference (and all withdrawals and deposits equal the sum on your bank statement you are reconciling to) then your reconciliation process would be complete.
  7. If you scroll further down you will notice three tabs in the middle:
    1. Payments – click this to view only the unreconciled payments (withdrawals) in your unreconciled transactions list below.
    2. Deposits – click this to view only the unreconciled deposits in your unreconciled transactions list below.
    3. All – this selection will allow you to view all unreconciled transactions.
  8. To begin the reconciliation process, have your printed out copy of your bank statement on your desk and a highlighter in hand, then begin at the top of the transactions list on your bank statement and choose the first transaction and find it in your unreconciled transactions list in QuickBooks.
    1. Once you find a match, simply click on the circle in QuickBooks next to this transaction and also put a dot next to this same transaction with your highlighter on the printed bank statement on your desk.
  9. Proceed to the next transaction listed on your bank statement and go through the same process of finding this transaction in QuickBooks and marking the match in both QuickBooks and on your bank statement.
  10. Keep on doing this same process with all listed transaction on your bank statement until you have marked all transactions on your bank statement AND the difference amount in the Difference field at the top right side in QuickBooks states a zero amount.
    1. Note: It is advised that, for your check payments that you have written, you also verify both the amount that cleared and also the check number that cleared. Make corrections as needed.
  11. Once you are satisfied that your bank reconciliation is completed, then simply click on “Finish now” in the upper right-side area of the screen in QuickBooks.

 

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