Reconciliation can be done both manually and through the use of a program. If you are using software like QuickBooks then here is how to reconcile accounts in QuickBooks and reconcile in QuickBooks desktop.
Reconciling accounts is vital for all organizations. Across the globe, reconciliation is used as the chief method of ensuring accuracy. The account balance is tallied with documents in order to discover any discrepancy with the data. Also, reconciliation takes bank statements into account which provide details about each and every transaction.
Reconciling Accounts in QuickBooks
Books are usually reconciled at the end of the financial period. Also, before closing the books it is essential for all organizations to create a reconciliation statement and check the income and expense accounts.
Organizations can also create reconcile statements on a daily, weekly, or on month-to-month basis. The biggest benefit of creating a reconciliation statement is that it helps you in finding discrepancies in your accounting data. Through this document, accountants can easily ascertain the inaccuracy of fraudulent use of money. Not only does this statement help you in avoiding inaccuracy but also penalties from state and federal agencies. Also, wrong information about a company’s books can seriously damage the goodwill of any organization.
Process and How to Reconcile Accounts in QuickBooks
You need to be careful while creating a reconciliation statement. With QuickBooks users can easily reconcile accounts. QuickBooks works with income and expenses as different accounts. All of the assets and liabilities accounts are linked to the Chart of Accounts. Through a chart of accounts, users can view and edit all the different accounts present in a particular company file.
- Select the Gear icon present on the top right side of your window.
- Select Reconcile under the Tools tab.
- Click on the drop-down menu and select the account. Please note that this would be the same accounting that will be reconciled.
- Click on “Reconcile Now”
- From the bank statement for the account that is to be reconciled, enter the Statement End Date.
- QuickBooks has an inbuilt calendar through which you can easily select the statement end date.
- Enter the Beginning and Ending Balance
- Click Ok
Match the Expenses
Upon completion, users need to match all expenses in order to ascertain accuracy. Make sure to follow the steps given below in order to match expenses after reconciling an account in QB.
- Match the transactions provided on your bank statement with the ones reconciled in the report.
- Check the boxes against all the transactions that are mentioned in your bank statement.
- Below the reconciliation statement, you can check the difference between the account and bank statement.
- Until this difference comes down to 0, keep adjusting the transactions.
- Click Finish now when done
Users can check the reconciliation statements at a later date for fixing inaccuracies. For doing so, follow the steps given below.
- Reopen the reconciliation page by going to the gear icon.
- Select the Reconciliation statement that you want to edit
- Now edit the report by following the steps given above.
Analyzing reconciliation reports with QuickBooks is quite simple. Users can select the reconciliation statement and hit run the report. QB will provide a summary as well as a detailed analysis of the reconciliation statement. The summary section of this report provides useful details such as statement beginning balance, checks, and payments cleared, deposits and other credits cleared, and so on.
In order to print out the reconcile report, click on the print button above the report. Select the number of copies you want to print. You can also save it as a pdf and attack it on the bank statement at a later date.
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