How to Reconcile Bank Account and Accounts Receivable in QuickBooks/QBO/QB Desktop?

How to Reconcile Bank Account and Accounts Receivable in QuickBooks/QBO/QB Desktop?

In QuickBooks, reconcile means to match your account’s statements with those of your credit card or other transactions. To do so, certain details are needed. These details can include your statement’s start date and end date, or your account’s beginning balance and ending balance. With these details, you can reconcile your bank statement as well as AR or accounts receivable. 

To brief you on how to reconcile in QuickBooks for bank accounts and accounts receivable, we have listed several methods in this blog. These methods can be applied to QuickBooks Online as well as QuickBooks Desktop.

Let us now start reading further.

Take a look at the synopsis of this blog for knowing more about what you will be learning here:

What does Reconcile Mean in QuickBooks?

To reconcile in QuickBooks Online, QuickBooks Desktop, or other versions means to review the accounts of a user. This process is similar to balancing a checkbook. As a user of this software, you may have added your bank accounts to it. There may be a need to match the account’s statements with the statements relating to your credit card. This can be understood as reconciling. 

How to Reconcile in QuickBooks Online?

For running the process of reconciling in QBO, you can open the settings via the software’s Gear icon. Then you can choose Tools and look for the Reconcile option. After selecting the same, you can rush to the dropdown option to find Accounts. You can choose one and start reconciling it. To continue, you will be asked for information such as Ending Balance, Ending Date, etc. On providing the same, you will be closer to running the reconciliation process.

  • Ensure that, on your system, the software is running.
  • Press the symbol resembling “Gear”.

Tip: The “Gear” symbol is usually located at the top in the accounting software. In case difficulties are faced in locating it, you will be suggested to read our post on where is the Gear icon/symbol located in QuickBooks. 

  • Click on “Tools”.
  • Select the option of “Reconcile”.
  • Visit the dropdown below “Accounts”.
  • Pick an account for reconciling it.
  • In “Ending Balance”, mention the amount.
  • Now, tap on “Ending Date”.

Note: To find the “Ending Date”, you can check the information on the statement provided by your bank.

  • Now, the transactions mentioned in the bank statement need to be matched.
  • Also, check these transactions.

Tip: You will find certain filters available while checking or matching the statements of your bank. These filters can be put to use. By applying them, finding your transactions will take less time.

  • See to it that in “Difference”, “0” or “Zero” has been displayed.
  • On seeing the “Success!” page, this process will come to an end.

We hope that this helped you understand how to reconcile on QuickBooks Online. However, you will be advised to first read all the steps instead of doing them side by side. By following this advice, you will avoid any chances of making errors while reconciling in the accounting software.

How Do You Reconcile in QuickBooks Desktop?

To find out how to reconcile in QuickBooks Desktop, reading this section can be very useful. In this version of QuickBooks, a long procedure needs to be performed for reconciling. For performing it, certain things can be required. Below, you can find an overview of this procedure to get an idea of the required things.

You will have to start by reviewing your balance in QB for beginning the reconciliation procedure. After this, each transaction will have to be provided. Then you can opt for Reconcile from the Banking menu available in the software. In the process, you will be asked for the Statement Date, your bank/credit, Ending Balance, etc. Input everything that is required. Some of the information will get auto-inserted based on the details provided by you. Following this, you will be able to reconcile in QuickBooks Desktop. 

Tip: Making a backup of the QuickBooks company files of your organization will be suggested prior to starting this method. 

  • The opening balance needs to be reviewed in QuickBooks.
  • Now, enter every transaction.

Note: The transactions that you enter should be related to the period of the bank statement. This period will be the one that needs to be reconciled. You may avoid entering a transaction that has not been successfully cleared.

  • Now, tap on “Banking” in “QB”.
  • “Reconcile” has to be chosen.
  • Click on “Account”.
  • You will see your bank as well as your credit card. Pick one of these depending upon what you wish to reconcile in QB.

Note: After this step, “Statement Date” will be filled by the QuickBooks software itself. You may manually change the date if it is necessary to do so.

Tip: For those of you who wish to reconcile credit cards in QuickBooks, we have prepared a complete reading. Click here to see all the steps involved in doing so.

  • Wait for the software to auto-fill “Beginning Balance”.

Note: It will be useful to know that for auto-filling “Beginning Balance”, QuickBooks uses “Ending Balance” based on the last reconciliation.

  • Fill in the field of “Ending Balance”.

Note: To know “Ending Balance”, you can check the statement given by your bank.

  • Now, input the information required in “Service Charge”.
  • Ensure that “Interest Earned” is filled in by you.

Note: Avoid including any charges that have already been included.

  • After this, press “Continue”.
  • Compare the transactions included in your bank statement and the accounting software. To do so, match the initial transaction.
  • Open the window for “Reconciliation”. Check that the initial transaction also exists in it.
  • After comparing the transaction, tick the “Checkmark”.

Note: By ticking the “Checkmark”, you will be indicating that the first or initial transaction correctly matches in QB and bank statement.

  • Repeat steps 12 to 14 to check every transaction and compare it.

Note: As you continue comparing the transactions for reconciling, you will notice that the amount in “Cleared Balance” reduces. Also, understand that this amount will increase when the deposits and credit amounts are cleared/added.

  • While comparing, if there is a need to edit a transaction, then choose it and press “Go to”.
  • For changing any information, choose “Modify”.
  • Now, ensure that the difference in the “QB” transactions and bank statement is “$0.00”.
  • Press “Reconcile Now”.
  • In “Display”, check the report for reconciliation.
  • Then choose “Print” if necessary.

Additionally, you may visit “Reports Center” in “Reports”. Run “Previous Reconciliation”. Choose that account that has been reconciled. You may pick “Summary” or “Detail” for this purpose. You can also use both of these options.

How to Reconcile a Bank Account in QuickBooks?

In QuickBooks, to reconcile a bank account, you can check that all your payments have been recorded. Now, you can open the software’s Home Page to find the option of Reconcile. To carry on, select one bank account. Then bring your bank statement to learn the date written on this. This statement date will have to be entered in the Calendar of QuickBooks. Afterward, you can start writing the other pieces of information. Later, you can compare the transactions in your bank with the ones listed in Inuit QuickBooks to reconcile your account.

  • First, update “QuickBooks”.

Tip: You may be a first-time or a new user of QuickBooks. Since you may not be having the complete information available to update the software, you may face trouble in doing the same. Consider reading how you can update QuickBooks to its latest release by clicking here.

  • Record the payments that are required.
  • After updating the transactions, get the bank statement.
  • From the “Home Page”, select “Reconcile”.
  • Pick your bank account.
  • Check the date of the statement on the actual bank statement.
  • Tap on the dropdown for “Calendar”.
  • Now, enter the date of the statement in this calendar.
  • Ensure that “Beginning Balance” on the bank statement and in the accounting software is the same.

Note: It may happen that “Beginning Balance” in the statement and QB software is different. In that case, please select “What if My Beginning Balance doesn’t Match Any Statement Link?”.

  • Input “Ending Balance” provided on the bank statement. 
  • Check whether any service charges are available on the statement. Then include them in “Service Charge”.
  • Mention “Account” with respect to the service charges.
  • In “Interest Earned”, provide the interest payments’ amount, in case received.
  • Make changes to “Date” if required.
  • Provide “Account” for the interest payments you have received.
  • Push “Continue”.
  • On the next screen, some transactions will be found in QB. Match them with the transactions made to your account.

Note: It will be helpful to check twice that the transactions in the above step correctly match each other.

  • Ensure that “0.00” is mentioned as “Difference”.
  • Now, tap on “Reconcile Now”.
  • Afterward, select “Ok”.

You may choose to print the report of reconciliation of the bank account. Prior to finally printing this report, you may prefer selecting “Display”. This option will present a preview of the report. 

How to Reconcile Accounts Receivable in QuickBooks?

Accounts receivable or AR can be reconciled in QuickBooks via its Settings or the Gear icon. This features options that include Reconcile. For reconciling the payments that your company is yet to receive from its customers, you can write the statement’s start date, end date, beginning balance, and ending balance. In a short while, reconciliation will begin and get over. Using this process, the AR can be reconciled in QBO as well.

Let us now go through the following options. With the help of these, you can learn how to reconcile accounts receivable in QuickBooks and QuickBooks Online.

Option 1: Reconciling the Accounts Receivable in QB

To begin reconciling AR or accounts receivable in QB, you can use its Gear icon to view Tools. This tab will comprise Reconcile. After selecting this, you can opt for one account to continue with the reconciliation of the AR. Now, you need to press Reconcile Now. As you may know, to move forward, the details relating to the start date, end date, Beginning Balance, Ending Balance, etc., will have to be provided. Once you provide them, you will reach the stage of tallying your transactions. 

If you are reconciling in QuickBooks for the first time for accounts receivable, then ensure that you have all the required details with you beforehand. These details can be learned through these steps.

  • Open the “QuickBooks” program and sign in.
  • Tap on “Gear”.

Note: The Gear-type icon of QB is often used for executing different processes. It can be helpful to learn about this icon and what it does. Therefore, you will be recommended to read what is the Gear icon in QuickBooks and how it functions.

  • Visit the tab that says “Tools”.
  • Now, press the “Reconcile” tab.
  • Pick the account which is required to be reconciled.
  • “Reconcile Now” needs to be clicked on.
  • Mention the statement’s start date.
  • Now, input the end date for this statement.
  • Now, write the information for the following fields:
    • “Beginning Balance”
    • “Ending Balance”
  • Press “Ok”.

Following this, start tallying the transactions that are available in your account with those mentioned on the statement of the bank. The amounts listed in both should be the same.

Option 2: Reconciling Accounts Receivable in QuickBooks Online

In QuickBooks Online, the reconciliation method for accounts receivable can be started from its Gear button. This button displays a direct Reconcile option. After choosing the same, you will be asked to click on one bank. Then you will see, Ending Balance, Statement End Date, as well as Beginning Balance. Input correct information in these fields. Now, find out the total of the amount on your statement as well as that of the statement added to QBO. This will help you go further with the reconciliation of accounts receivable.

You can also view how to reconcile accounts receivable in QuickBooks Online step-by-step. Read here to see the steps: 

  • Click-open “QBO”.
  • View the “Gear” button and select it.
  • Opt for “Reconcile”.
  • Opt for a bank account.
  • Now, fill in the details as mentioned below:
    • “Statement End Date”
    • “Ending Balance”
    • “Beginning Balance”
  • Find out the total amount of the statement.
  • Now, check the total amount of the statement in “QBO”.
  • Ensure that the values found in steps 6 and 7 are the same.
  • Now, check the balance that has been cleared.
  • Also, find out “Statement Ending Balance”.
  • See to it that the values calculated in steps 9 and 10 are not different.
  • Next, choose “Zero Difference”.
  • Following this, tap on “Finish”.

Reconciling your bank account and accounts receivable can be easily done in QuickBooks. This software has been made with an option that lets you insert important information. It also enables an easy comparison to tally your transactions. After reading the contents of this post, you would have become familiar with reconciling in the software. In case any queries related to the same need to be resolved, do connect with us using our comment section.

Those of you who have a fondness for understanding QB in detail should consider reading our other blogs. Click here to learn about recurring journal entries in QuickBooks. In addition, with this blog, you can look at the method to export journal entries from QuickBooks to Excel.

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