How To Perform Account Reconciliations Using The Online Version Of Quickbooks
Every business needs to have financial statements to represent profit and loss accurately. A further consideration is that if the business owner does not maintain accurate quickbooks information regarding the balances of their savings, checking, credit card accounts, and money market, they are likely to overspend or overpay an account at a quickbooks support services particular time.
Errors, fraud, missed payments, and duplicate entries can be found and identified through the reconciliation process. It also refers to comparing the statements generated by your financial or credit institution with the information in your accounting quickbooks software support, such as deposits, costs, charges, and other similar items.
At the end of the process, all the balances of your accounts should be matched. Keep reading to learn how you can reconcile your accounts in QuickBooks online.
What is Reconciliation?
Comparing two sets of records to guarantee that the findings are precise and consistent is called reconciliation in the accounting field. In addition, reconciliation ensures that the accounts in the general ledger are correct, consistent, and comprehensive. On the other hand, reconciliation is not only helpful in corporate settings; it also has personal email support services applications.
The process of reconciling accounts can be helpful when attempting to explain differences in account amounts or other types of financial data. Because the time of transactions and deposits can result in different outcomes, it is possible that some variations can be tolerated. On the contrary, inconsistencies that cannot be explained could indicate accounting irregularities or scams in particular. The records can be reconciled regularly, monthly, or yearly, depending on your preference.
The Initial Procedure
Before you proceed to reconcile your accounts, you need your account statement or the accounts which you are going to reconcile. In case of bank reconciliation, you can download your account statement from your bank online, or you can connect your bank with QuickBooks Online. Linking your account with QuickBooks is easy, ensuring you don't have to download your account statement repeatedly. QuickBooks will timely keep you updated with all your account statements.
Remember that service charges and interest are not always shown in the quickbooks support software, so you must be mindful to prevent double entry.
Reconciliation of Accounts Using QuickBooks Online
After downloading your transactions, you are prepared to start matching or adding. The online version of QuickBooks offers many different possibilities, such as adding, matching, and transferring. When a spending or deposit is matched, it indicates a similar bill or purchase receipt that goes along with it. The addition function is used when it is necessary to classify an expense. When you categorise something, you select the category to which the item most closely relates. This could be an expense or an income. In many instances, QuickBooks Online will choose a category independently, and you may create rules that will allocate transactions with comparable characteristics within the same category.
Navigate to the Banking button left of the Quick Books Online page. Make selections under "Banking" on the dropdown menu. You can access the aforementioned choices by looking to the far right of the screen.
Proceed with the right course of action after going through each transaction. After ensuring that everything is consistent, the next step is to reconcile.
Steps To Reconcile
Below are the steps to reconcile your account in QuickBooks Online:
- Step 1: Click on the gear button of the company
- Step 2: Navigate Tools>Reconcile.
- Step 3: Select the account you want to use in the reconciliation.
- Step 4: Verify that the starting balance in QBO and the credit card or bank report match.
- Step 5: Enter the Closing Balance and Date.
- Step 6: Typically, some banks' service fees and interest earned have their own sections.
- Step 6: Typically, some banks' service fees and interest earned have their own sections. Before starting the reconciliation, enter those, and then select Start Reconciling.
- Step 7: You can manually enter service fees and interest. It is also possible that your credit card or bank provider with the other payments may have already entered them. To decide what must be done, proceed to the reconciling screen.
- Step 8: Select all the transactions on the reconcile screen by clicking the check box on the top. After selecting all the entries, you can unselect as you want.
- Step 9: If the top screen shows a 0 balance, there is no discrepancy, and the accounts have been reconciled.
After the reconciliation, if somehow the balance is not equal to zero, there is some discrepancy. In this case, verify all the opening balances and closing balances. If the opening balance is different from what you expected, someone has altered the accounts after the reconciliation of the previous month. If you are unsure how to solve the discrepancy, contact any QuickBooks support for further help. So there you have it, after following the above steps, you can easily reconcile your bank accounts and similarly other types of accounts.