Intermediate
How to reconcile bank statements on QuickBooks
Quick Answer
Reconciling bank statements in QuickBooks involves comparing your bank statement with QuickBooks records to ensure accuracy. Access the reconciliation tool from the Banking menu, enter statement details, and match transactions until the difference is zero.
Prerequisites
- Active QuickBooks subscription
- Bank account connected to QuickBooks
- Latest bank statement available
- Basic understanding of accounting transactions
1
Access the Reconcile Feature
Navigate to the Banking menu in the top navigation bar and select Reconcile. If you're using QuickBooks Online, go to Bookkeeping > Reconcile. Choose the bank account you want to reconcile from the dropdown menu.
Tip
Make sure you have your bank statement ready before starting the reconciliation process.
2
Enter Statement Information
Input your bank statement details in the reconciliation window:
- Statement ending date - Enter the date from your bank statement
- Beginning balance - This should auto-populate from your previous reconciliation
- Ending balance - Enter the final balance shown on your bank statement
Tip
Double-check that the beginning balance matches your bank statement's starting balance.
3
Review and Match Deposits
In the Deposits and other credits section, check off each deposit that appears on your bank statement. Look for:
- Customer payments
- Bank interest
- Other income deposits
Tip
If a deposit is missing, you may need to record it before continuing the reconciliation.
4
Match Checks and Payments
In the Checks and payments section, check off each transaction that appears on your bank statement:
- Written checks
- Electronic payments
- Bank fees
- Automatic withdrawals
Tip
Pay attention to outstanding checks that haven't cleared yet - leave these unchecked.
5
Resolve Discrepancies
Monitor the Difference field at the bottom of the reconciliation window. This should show
$0.00 when complete. If there's a difference:- Look for missing transactions
- Check for amount discrepancies
- Verify dates are correct
- Look for duplicate entries
Tip
Common discrepancies include bank fees, interest, or transactions recorded on different dates.
6
Complete the Reconciliation
Once the difference shows
$0.00, review your work and click Finish now. QuickBooks will ask if you want to print or save a reconciliation report. Select your preference and click OK. The reconciled transactions will be marked with a checkmark in your register.Tip
Always save or print the reconciliation report for your records and future reference.
Troubleshooting
Beginning balance doesn't match bank statement
Check if the previous reconciliation was completed correctly. Go to the Chart of Accounts, open your bank register, and verify the last reconciled balance matches your statement.
Transactions appear in QuickBooks but not on bank statement
These may be outstanding transactions that haven't cleared yet. Leave them unchecked during reconciliation. If they're old, contact your bank to verify the status.
Bank statement shows transactions not in QuickBooks
Add missing transactions by clicking Add Transaction during reconciliation, or go to Banking > Banking to download and categorize missing transactions.
Reconciliation won't balance despite multiple attempts
Look for Previous Reconciliation Reports under Reports > Banking to identify when the discrepancy started. Consider undoing the last reconciliation if errors were made.
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