How to Reconcile a Bank Account in QuickBooks Online

What Does it Mean to Reconcile?

Reconciling your bank account means you are comparing your bank statement to what you have written down in QuickBooks. It is like making sure your piggy bank count matches what your mom wrote down. If they don’t match, you need to find out why! This helps you catch mistakes or things you forgot to write down.

Why Should You Reconcile?

Reconciling is super important for many reasons. It helps you know exactly how much money you have. It also helps you find mistakes like a missing payment or a bill you forgot to pay. This way, your money numbers are always right.

What You Need Before You Start

Before you start, you need a few things. Make sure you have them ready!

• Your latest bank statement. This is a paper or digital report from your bank that shows all the money that went in and out.
• QuickBooks Online open on your computer. Make sure you are logged in to your business account.

Step 1: Go to the Reconcile Page

First, you need to tell QuickBooks you want to start reconciling. It's like opening the right page in a coloring book.

• In QuickBooks, on the left side, look for 'Accounting'.
• Click on 'Reconcile'. You will see a new screen pop up.

Step 2: Enter Your Bank Statement Info

Now, you need to tell QuickBooks what your bank statement says. It's like telling a friend what numbers are on your paper.

• Pick the bank account you are reconciling. Make sure it's the right one!
• Look at your bank statement for the 'Ending Balance'. This is how much money was in your account at the end of the month. Type that number into QuickBooks.
• Find the 'Ending Date' on your bank statement. This is the last day your bank statement covers. Type that date into QuickBooks.
• Click 'Start Reconciling'.

Step 3: Match Everything Up!

This is the most important part! You will see a list of money in and money out in QuickBooks. You need to check off everything that also shows up on your bank statement. It's like playing a matching game.

• Look at the money that came into your account (deposits) on your bank statement. Find those same amounts in QuickBooks and put a checkmark next to them.
• Look at the money that went out of your account (payments, bills) on your bank statement. Find those same amounts in QuickBooks and put a checkmark next to them.
• As you check things off, watch the 'Difference' number at the top right of the screen. You want this number to be zero! This means everything matches.

Step 4: Finish Up

Once the 'Difference' is zero, you are all done! You did a great job!

• If the difference is zero, click 'Finish Now'.
• If the difference is NOT zero, don't worry! Go back and look for mistakes. Did you miss checking something off? Did you type a number wrong? Take your time and find the mistake. If you still can't find it, ask a grown-up for help.

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