How To Reconcile Bank Statements With QuickBooks Online?

1. How To Reconcile Bank Statements With QuickBooks Online? Whether it is SMEs or big corporate houses, a staunch financial system paves way for better productive gains that can leverage the business revenue graph. From maintaining day-to- day bookkeeping to creating a year-end financial statement, there is a myriad of accounting procedures that establish accuracy and precision in the fiscal system of the business. Being observant to each transaction and appropriately placing them into respective accounts, preparation of bank reconciliation statementis one of the imperative accounting procedure that ensures the accuracy of every transaction by paralleling its authenticity with related financial data such as invoices, bank statements, credit card bills, etc. A reliable bank reconciliation statement further makes it easier to find errors in journal entries and rectify them at early stages of reconciliation. QuickBooks: The New Age Bank Reconciling Method In the era of digitalization, there are plenty of automated software alternatives to perform all the accounting procedures that ensure the accuracy and decrease the chances of errors. When it comes to reconciliation, QuickBooks Onlineis one of the most popular options. With QuickBooks, all the transactions can be manually entered into the software against the provided bank or credit card statements.

2. Generally, the process of reconciliation is conducted at the end of every financial year of a quarter, but with QuickBooks, businesses can perform monthly reconciliations as it automatically feeds the transaction data once the statements are received. Unlike the traditional reconciliation process, QBO bank reconciliationmakes it easier for the accountant to keep a track of all transaction without the risk of omission and duplicity. How To Get Reconciled With QuickBooks? In order to use the services of online bank reconciliation and enjoy the perks of getting reconciled within a few clicks, it is important to understand how to reconcile a bank statementon Quickbooks Online. Below are the quick steps to get the bank statements reconciled with Quickbooks. Take a look:- Navigate to The Reconcile Menu Assuming that you have already installed and created a business account in Quickbooks Online software, follow the below steps to start reconciling:- Go to home screen and click on the ‘Gear Menu” found below the Tool column. Select the Reconcile tab from the drop-down menu.   Fill in Account Details After clicking on Reconcile tab a pop window will appear asking the details of the account that needs to be reconciled. Follow the below steps to fill in the information:- Account: Select the type of account you need to reconcile from the drop-down menu. Beginning Balance: Enter the beginning balance from the monthly bank statement or the ending balance on the previous bank reconciliation. Make sure both should be similar. Ending Balance: Enter the ending balance from the monthly bank statement. Ending Date: Fill in the ending date mentioned in the bank statement. Once all the information is appropriately filled, click on “Start Reconciling”      Match Expenses

3. Once the the details are entered and the process of reconciliation starts, QuickBooks will present a transaction history against the entered bank statement details. Follow the below steps to match the transaction details:- In the reconciliation, window match every transaction from the bank statement with the specific items in the list. Click on the checkbox to the right of each transaction.   Finish and Examine Reconciliation Report After keenly checking each transaction, it’s time to conclude the reconciliation and examine the report. Follow below steps do the necessary steps:- Click on “Finish Now” tab after completing the checking procedure. Navigate back to the Reconcile Menu. Click on Run Report from Reconcile Menu to view a detailed report of the previous reconciled account. Print a copy of the online reconciliation along with the bank statement.     With the assistance of softwares like Quickbooks, handling bank reconciliation has become convenient and efficient than ever. Irrespective of the size and structure of the business, a growing number of entrepreneurs are adopting Quickbooks Online to avoid inconsistencies and errors witnessed in accounts during bank reconciliation.