How to reconcile a bank account in QuickBooks Online
Before you start
- Have the bank statement for the month in front of you.
- Make sure every transaction for that month is entered or categorized in the bank feed.
- Check the last statement ending date QuickBooks shows: this statement should start the day after it.
Step by step
- Open Reconcile. Depending on your QuickBooks Online version it's under Accounting or the Settings (gear) menu.
- Choose the bank or credit card account.
- Enter the Ending balance and Ending date from the statement, then select Start reconciling.
- Go down the statement line by line. For each transaction that matches by date and amount, select its checkbox in QuickBooks.
- Watch the Difference at the top. Keep going until it's $0.00.
- Select Finish now. QuickBooks saves a reconciliation report you can find later in the reconciliation history.
Transactions you matched from a connected bank feed are often already selected. You only need to check the rest.
If the difference isn't zero
| Likely cause | How to spot it |
|---|---|
| A transaction is missing from your books | It's on the statement but not in the list. Add it |
| A transaction is in your books twice | Two identical amounts on the same day, but only one on the statement |
| A wrong amount | If the difference divides evenly by 9, two digits are probably swapped (for example $54 entered as $45) |
| The wrong ending balance or date | Select Edit info and check them against the statement |
| A previously reconciled transaction was changed | Last month's opening balance no longer matches. Check the reconciliation history |
It's normal for some transactions in your books not to be on this statement yet, such as an outstanding check that hasn't been cashed. Leave those unchecked; they'll clear next month.
Your first reconciliation and credit cards
- First time: make sure the account's opening balance in QuickBooks matches the statement you're starting from. If it doesn't, fix that first; otherwise the difference will never reach zero.
- Credit cards: reconcile them the same way, using the card statement's ending balance and closing date. Charges increase the balance; payments reduce it.
Common questions
How do I reconcile in QuickBooks Online for the first time?
Check that the account's opening balance in QuickBooks matches the starting balance on the first statement you're reconciling. If it doesn't, fix that first; otherwise the difference will never reach zero.
How often should I reconcile?
Every month, for every bank and credit card account, as soon as the statement is available. It's a core step of the month-end close.
Can I just accept the difference?
QuickBooks lets you finish with a difference by creating an adjustment, but it hides an error rather than fixing it. Find the cause first, and talk to your accountant before adjusting.
Related guides
Sources
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