If you don’t already know how to reconcile accounts receivable in QuickBooks (Desktop and Online) then let’s figure out the same with the step-by-step process. At the end of every financial year, all organizations reconcile QuickBooks accounts to ensure the accuracy of their books. Though working offline and following traditional practices may work for you things can be easy if you are using QuickBooks.
For reconciling accounts, organizations usually tally the data present in income, expense, asset, and liabilities accounts with the data in their bank statement. Users can zero in on the discrepancies and fix them by doing this. Also, reconciling books of accounts is a mandate for every organization whether big or small. Still, it is better to reconcile accounts at the end of each month. Some organizations reconcile their accounts every week.
How to Reconcile Accounts Receivable in QuickBooks (Desktop and Online)
Account reconciliation not only helps users in ensuring accuracy but also in identifying fraudulent transactions. While reconciling a particular account, users can view the flow of money. Any discrepancy can be easily identified and rectified before it hurts the credibility of the organization.
Users can easily reconcile accounts receivables in QuickBooks (Desktop and Online). To do so, they can either download their transactions and bank statements in Web-Connect format or link their bank account with QuickBooks. The latter would be more convenient for users will be able to download the bank statement for a particular period directly into QuickBooks. Learn how to reconcile accounts receivable in QuickBooks (Desktop and Online).
- Log into QuickBooks
- Go to the gear icon on the top right side of the QuickBooks desktop window.
- Select the tools tab then click on reconcile.
- Search and select the account that you want to reconcile.
- Hit “Reconcile Now“
- Select the start and end date of the statement.
- Fill in all the necessary fields such as the beginning and ending balance.
- Click on OK.
Now, users need to Tally all Transactions mentioned in their Accounts with the one provided in their Bank Statement. Users need to tally the numbers manually. Follow the steps given below while matching transactions of accounts with bank statements:
- Once your reconciliation statement is ready, open it and start matching all transactions present on the statement with the ones present on the bank statement.
- QuickBooks Desktop provides a checkbox against all the transactions present in the reconciliation statement. Mark the box against the transactions that you can find on your bank statement.
- While reconciling accounts in QuickBooks Desktop, make sure to bring down the difference between the amount in the reconciliation statement and the bank statement to 0.
- Hit Finish when done.
Reconcile Accounts Receivable in QuickBooks Online
- QuickBooks Online Click on the gear icon
- Then, click on the reconcile option
- Select your bank account
- Need to enter the beginning balance, ending balance, and statement end date
- Compare your statement totals with QuickBooks Online totals
- Your cleared balance should match the statement ending balance and the difference should be zero
- Click on zero difference and then click Finish to reconcile.
You can tally the transactions at a later date. QuickBooks Desktop provides you with all the flexibility you require. Also, you can easily search for your reconciliation statement with the help of tags and the new smart search feature. QuickBooks also provides a summary as well as a detailed report of the reconciliation statement. You can also create multiple printouts of this report or send it via QuickBooks by integrating your email address. Any help & Consultant connect QuickBooks consultant professional experts or live chat with us.
