How to Reconcile Bank Statements in Quickbooksby Jackie Lohrey
While reconciling a bank account is not usually a fun or interesting job, it is nevertheless an important monthly task. Banks can and do make mistakes, employees make data entry errors, and security protocols require consistent monitoring of accounts. Reconciling bank statements in QuickBooks is not difficult and is a task you can accomplish with a minimum of time and frustration. If problems do occur, QuickBooks has features that help you locate and correct the error.
Select the QuickBooks "Banking" main menu tab and then select "Reconcile" to open the "Begin Reconciliation" window.
Select the bank account you want to reconcile from the drop down list, enter the statement date from the bank statement and verify the beginning balance on your statement is the same as on the reconcile screen. Enter the ending balance from your statement and any service charges or interest earned on the bank account. Select "Continue" to the "Reconcile" window.
Match and check off deposits, checks, payments, and fees. Double-click incorrect entries to edit the transaction in your QuickBooks account register and select "Return to reconcile" when finished. If you forgot to enter a transaction, select the "Check Register" button, add the transaction in your QuickBooks register and then return to complete reconciliation.
When the reconciliation is complete and the difference amount in the lower-right corner of the screen is zero, the "Select Reconciliation Report" window will open. You can choose to display, print, or display and print the report. If you do not want a reconciliation report, click the "Close" button without making a selection.
- If beginning amounts do not match, create a reconciliation discrepancy report to locate the error. Press the "Locate Discrepancies" button, select the correct bank account and press the "Discrepancy report" button. Enter appropriate dates to view the report. Make necessary changes to your account register and then proceed with reconciliation.
- For security reasons, it is a good idea to assign duties to a specific individual not responsible for writing checks or making payments from the account.
- Do not proceed with reconciliation if beginning amounts do not match.
Items you will need
- Bank statement
- bank image by Jut from Fotolia.com