Just like balancing your checkbook, you need to review your accounts in QuickBooks to make sure they match your real-life bank and credit card statements. Just like balancing your chequebook, you need to review your accounts in QuickBooks to make sure they match your real-life bank and credit card statements. If there’s a transaction on your statement that what happens when depreciation is not added back to cash flow isn’t in QuickBooks but the transaction is correct, then you need to add it to QuickBooks. In our sample credit card statement, you’ll notice that the transaction for Michael Kretchmar for the amount of $300 isn’t recorded in QuickBooks.
Companies may find reconciling within QuickBooks Desktop essential for maintaining accurate financial records and ensuring the integrity of their accounts. Review every transaction in the QuickBooks Reconcile screen and match it to those on your credit card statement. For every transaction that matches your statement, click on the checkbox next to the transaction. As you put a checkmark on a transaction, you’ll notice that the cleared balance and difference on the lower right side of the screen adjust.
Step 3: Start your reconciliation
When you’re done reviewing your statement, you’ll know everything made it into QuickBooks. Sign up to financial covenants for specific types of companies receive more well-researched small business articles and topics in your inbox, personalized for you. Click Save & Close, and the transaction is added to the reconciliation screen.
Matching transactions in QuickBooks to the credit card statement. Here’s a tutorial video of the credit card reconciliation process in QuickBooks Desktop Pro and Premier. Here’s how you can review all of your cleared transactions.
Next Steps: Review the reconciliation
Additionally, reconciliation provides a clear audit trail, aiding in regulatory compliance and financial reporting requirements. For other types of accounts, QuickBooks opens the Make Payment window. This lets you write a check or enter a bill to pay to cover the outstanding balance. This lets you write a cheque or enter a bill to pay to cover the outstanding balance.
(Optional) Step 5: Write a Check to Pay Now or Enter a Bill
To create a new transaction, open the Enter Credit Card Charges screen from the payroll taxes and employer responsibilities Banking menu. Enter the correct information based on your credit card statement. If you see a transaction in QuickBooks that isn’t on your credit card statement, don’t delete it. It’s most likely a transaction that will show up on next month’s statement. Any unmarked transaction this month will appear automatically in next month’s reconciliation. However, if the charge is more than a month old, then it needs to be investigated to see if the entry in QuickBooks is wrong.
- Enter the correct information based on your credit card statement.
- When you create a new account in QuickBooks, you pick a day to start tracking transactions.
- From your QuickBooks Desktop dashboard, click Banking from the top menu bar and then select the Reconcile dropdown.
- We recommend setting the opening balance at the beginning of a bank statement.
- You enter the balance of your real-life bank account for whatever day you choose.
If you decide to purchase Pro, one of our best small business accounting software, you will get a 33% discount on your first year. If you have several months or even years of transactions in QuickBooks Desktop that have not been reconciled with your financial statements, you can reconcile them without having to do so one month at a time. If your un-reconciled transactions and statements span multiple fiscal years, the recommended method to reconcile them is one year at a time. To see all of your adjustments on the list, you can review a Previous Reconciliation report for the reconciliation you adjusted. This will show you cleared transactions and any changes made after the transaction that may not show in your discrepancies. If you need help with this step, check out our tutorial on how to enter credit card charges in QuickBooks Desktop.
Reconcile an account for multiple months or years of transactions and financial statements
Mark Calatrava is an accounting expert for Fit Small Business. As a QuickBooks ProAdvisor, Mark has extensive knowledge of QuickBooks products, allowing him to create valuable content that educates businesses on maximizing the benefits of the software. After you click Reconcile Now, a pop-up screen will appear asking whether you want to write a check for payment now or enter a bill to pay later. If you don’t want to execute either of the two actions, click Cancel, and you’re done. If you aren’t a QuickBooks Desktop user yet, you can choose from a Pro, Premier, Enterprise, or Accountant package. We compare QuickBooks Desktop products to help you decide which one is right for you.