What is Reconciling?
Reconciliation is a process to get your Quickbooks to be 100% accurate, by matching what really happened with what was recorded. The most important accounts to reconcile are often checking accounts, since mistakes here could give an inaccurate view of available funds which can cause wrong spending decisions. Credit card and liability accounts also should be reconciled.
Download, Match and Add Banking Transactions (Quickbooks Online)
Before doing an actual reconcile, its good to work through your automatic banking downloads, if you have those set up. If you don’t, I recommend you do. It saves time, you catch things sooner and it offers a better overall Quickbooks user experience.
- Log into Quickbooks Online
- On the left side menu, go to Transactions -> Banking
- Click Update on the top right.
- Review, match and add transactions (double check before adding something)
- When all account transactions have been cleared for this section, its time to reconcile
Reasons to Look to Correct Mismatching Transactions
- Duplicate transaction entries
- Wrong amount on a transaction
- Wrong account on a transaction
- Wrong date on a transaction
- A transaction was entered correctly but hasn’t cleared yet (such as a check written but not yet deposited)
- Software glitch (rare)
Ways to Figure Out an Unknown Charge
- View the full transaction text (Click on the transaction in Quickbooks online to see more text at the bottom)
- Search Quickbooks for that amount, to see if this is a known reoccurring charge
- Ask everyone who has the ability to make purchases from that account
- Google the transaction description text
- Inform the credit card company if it was a fraudulent charge
Reconciling on Quickbooks Online
- Click the Settings button (gear icon) at the top right
- Click Reconcile (in the Tools column)
- Get the statement from the source of the account you are reconciling (bank, credit card, etc)
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