At the end of every financial year, all organization reconciles their accounts in order to ensure the accuracy of their books. Though working offline and following traditional practices may work for you but things can be really easy if you are using QuickBooks. If you don’t already know how to reconcile accounts receivables in QuickBooks then lets figure out the same with the step by step process.
For reconciling accounts, organizations usually tally the data present in income, expense, asset and liabilities account with the data in their bank statement. By doing this, users can zero in on the discrepancies and fix them. 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 on a weekly basis. To know more about reconciliation and it works, read this article.
Account reconciliation not only helps users in ensuring accuracy but also in identifying fraudulent transactions. While reconciling a particular account, users can clearly view the flow of money. Any discrepancy can be easily identified and rectified before it hurts the credibility of the organization.
Reconciling Account receivables with QuickBooks Desktop
Users can easily reconcile accounts receivables in QuickBooks Desktop. For doing 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. Also, integration provides more flexibility by letting users import all the transactions directly from their bank account. Further, Chart of accounts in QuickBooks Desktop can be used for easily reconciling accounts. It amalgamates all the accounts present for a company file. Hence, you can easily search for different asset, liability, income and expense accounts.
Steps for reconciling account receivables have been provided below:
- Log into QuickBooks.
- Go to the gear icon on the top right side of QuickBooks desktop window.
- Select the tools tab
- 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 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 statement:
- 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 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 reconciliation statement and bank statement to 0.
- Hit finish when done.
You can tally the transactions on the 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 summarized as well as the detailed report of reconciliation statement. You can also create multiple printouts of this report or send it via QuickBooks by integrating your email address.
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