Step-by-step instructions on how to reconcile a banking account or credit card in Quickbooks Online.
Step 1: Pull your bank/credit card statement and have it handy.
Step 2. Login to your Quickbooks Online (QBO), click the Gear icon then Reconcile (under Tools)
Step 3: Select the account you want to Reconcile. Enter the beginning and ending balance from your physical statement along with the date. Click Start Reconciling.
Step 4: Match transactions in Quickbooks Online to your bank/credit card statement and mark them off one by one by putting a checkmark in the circles to the right. Once you have matched all the transactions to your statement, the Difference (top right) will display $0.00. Click the green button Finish Now.
* If you see a Quickbooks Online (QBO) alert that your beginning balance is off by a certain amount, the issue will need to be resolved before you can reconcile the next month. This happens when a transaction from a previous period is modified or deleted. In the alert, QBO has a link that says "We can help you fix it". Follow this link so a screen that will show you what changes have been made.
Why Reconcile?
Reconciling your savings, checking and credit card accounts is the best way to make sure all transactions from that period are recorded in your books. Even if you are using the Quickbooks Online banking function and all of your transactions are automatically brought in, sometimes a transaction is left off or not recorded correctly. Reconciling your account will assure that all expenses and income are recorded. Your accounts should be reconciled monthly when the statements are available from your bank.
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