Most Chief Financial Officers (CFOs) agree that bank reconciliation statements can substantially help their organization in maintaining top notch accuracy. They can be a lot beneficial in identifying cases of frauds. While creating reconciliation statements, users are required to match all the entries present in income and expense accounts with the transactions present on their bank statement. But if you are facing QuickBooks Bank reconciation problems then you should call for support.
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Reconciling accounts is a crucial step that every organization needs to follow. Throughout the world, reconciling books is one of the best ways to maintain high-level accuracy within the system.
Account balances are matched with the in-house reports to find any variations. The process of reconciliation ensures that all the details about the related entry within reports are tallied and discrepancies found. Before closing the books of accounts it is vitally important for every business to create a statement of reconciliation and check for the net balances.
Reconciliation statements can be created at the end of every financial period. It is preferable to reconcile accounts on a weekly or monthly basis otherwise the unreconciled transactions will keep piling up. Also, make sure that you have the bank statements for the current as well as previous financial period. Further, bank reconciliation statements also help organizations in adjusting different types of income and expenses such as interest earned or paid.
Reconciling Accounts with QuickBooks
All income and expense accounts can be easily accessed through the chart of accounts. Users can search for particular accounts by using the smart search feature or filters. You can easily link your bank account with QuickBooks and download transaction directly into this software. If you do not wish to do so then download bank statement in WebConnect format. The web-connect format is compatible with QuickBooks and can be imported easily. Also, for tallying transactions, you can use multiple tabs of your browser or create multiple windows. This will substantially reduce the amount taken for verifying each transaction.
Follow the steps given below for reconciling accounts in QuickBooks:
- Go to the gear icon
- Click on the Tools tab
- Select reconcile
- Search for the account that you want to reconcile. You can easily search for asset and liability accounts by going to Chart of accounts. Also, use the smart search tool and filters to search for particular income or expense accounts.
- Enter statement and data, ending balance, beginning balance. Use the inbuilt calendar to enter the dates.
- Hit Reconcile now
- Hit ok
Now, you need to match all the entries present on your reconciliation statement with the one present in your bank report. By doing so, you will be able to figure out all the inaccuracies present in your books. Also, this will give you the chance of rectifying these inaccuracies before creating year end or quarterly financial statements.
Use the steps provided below for matching transactions present in your reconciliation statement with the one present in your bank statement.
- Tally the transactions provided in bank statement with the one on your reconciliation statement.
- Mark the checkbox against each transaction that you can find on your bank statement.
- Keep on checking the remaining difference between the reconciliation statement and bank statement.
- Keep on checking the information until the difference in the two statements comes down to 0.
- Adjust all the inaccuracies
- Hit Finish Now
You can also tally the transactions on a later date. For doing so, just save the reconciliation statement. When you want to tally the transactions, follow the steps provided below:
- Go to the gear icon and reopen the reconciliation report dashboard.
- Search and select the reconciliation statement that you want to match with your bank statement.
- Follow the aforementioned steps for reconciling the account and tallying the transactions.
You have now reconciled your income or expenses account. Now, without further ado, you can create and publish your financial statements to delineate your strength to the entire world. Financial statements help organizations in attracting shareholders. It is always a good idea to create error free financial statements or otherwise, the organization might have to experience some backlash.
You can also create other reports on the basis of this reconciliation statement. Make sure to create reconciliation statements on a regular basis.
For more information, or for creating reconciliation statement, feel free to contact us.
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