Businesses\nranging from small ventures to large enterprises undertake several\ntransactions, often in thousands, making it difficult to keep track of all of\nthem. They require comprehensive bookkeeping practices to ensure that their\nrecords tally with those of the bank account and credit card account to which\nthe businesses have been linked. QuickBooks Desktop provides efficient tools to\nkeep track of the list of transactions and tally them with the right accounts.\nThis process called reconciliation of transactions in QuickBooks can be\nautomated. In this blog, we will see how to reconcile in QuickBooks.<\/p>\n\n\n\n
While\nthe obvious necessity of reconciliation is to ensure that account statements\nwith various stakeholders\u2019 tally with the actual income and spending, it is how\nwell the information is captured that makes all the difference.<\/p>\n\n\n\n
Very often, businesses tend to overlook small amounts that are accrued through interest earned and service charges apart from bank charges. QuickBooks provides efficient methods to capture these details as well.<\/p>\n\n\n\n
Before we can understand how to reconcile in QuickBooks<\/a>, let us run through the broad measures to be taken before reconciling a bank account on QuickBooks.<\/p>\n\n\n\n There\nare two important screens to note during the reconciliation process in\nQuickBooks.<\/p>\n\n\n\n Begin reconciling<\/strong><\/em><\/p>\n\n\n\n The first screen is where users begin the reconciliation process. It is here that they ensure that the data entered is complete and accurate. Users will reach this screen from the Settings drop-down menu under Tools. <\/p>\n\n\n\n It\nis in the reconcile window that you have to select the account you want to\nreconcile and then enter the Ending Balance. The Statement end date is\npre-populated with 30 or 31 days after the last reconciliation. The date field\ncan be edited if needed. Similarly, the Beginning Balance is calculated as the\nsum of all previously cleared transactions.<\/p>\n\n\n\n The\nreconciliation window also allows users to manually enter any Service Charge\nand Interest Earned that may have been unaccounted. Select Locate\nDiscrepancies<\/strong> to identify records that don’t match. The other\noption, Undo Last Reconciliation<\/strong> can be used if discrepancies\ncannot be tracked or the date of the opening balance has to be changed. On\nclicking the button, all previously reconciled transactions will be reverted.<\/p>\n\n\n\n Click\non Continue <\/strong>if the information is correct.<\/p>\n\n\n\n Confirm reconciliation<\/strong><\/em><\/p>\n\n\n\n The\nnext screen is where you will see more granular statement information where\ntransactions can be cleared. Ideally, the difference between the total\nappearing in this window and the bank statement should be zero. You can confirm\nthat the records tally by clicking on Reconcile<\/strong>. <\/p>\n\n\n\n This\nscreen has buttons for performing other actions too. <\/p>\n\n\n\n If\nyou are late reconciling the records, you can hide the transactions that have\noccurred after the statement period for which you are reconciling the records.\nIf there are still too many transactions, they can be resorted by clicking on\nthe title\/ header of the column.<\/p>\n\n\n\n The Mark\nAll\/ Unmark All<\/strong> button selects or deselects all transactions.\nSelecting all transactions saves time when several balances have to be cleared\nat a time. <\/p>\n\n\n\n The Go\nTo<\/strong> button allows you to find and edit specific transactions before you\nreconcile.<\/p>\n\n\n\n You\ncan specify the visible columns on the screen using the Columns to\nDisplay<\/strong> button.<\/p>\n\n\n\n Any\ninformation that has to be corrected can be done so using the Modify <\/strong>button.<\/p>\n\n\n\n Under\nexceptional circumstances, when you may have to abandon your reconciliation,\nclick on Leave. <\/strong>Doing so will result in an asterisk (*) being\ndisplayed against the column of transactions.<\/p>\n\n\n\n The\nlast button is Reconcile Now<\/strong>. Click on this button to confirm that\nyou have cross-checked your data.<\/p>\n\n\n\n However,\nif there are any discrepancies, use the Reconciliation Discrepancy Report to\nadjust.<\/p>\n\n\n\n Now that you know how to reconcile in QuickBooks, it is not difficult to comprehend why QuickBooks Desktop is the best software for bookkeeping. QuickBooks reduces mundane transactions cross-checking tasks to simple button clicks. Filing taxes couldn’t have been made simpler. If you plan to migrate to QuickBooks Desktop, Apps4Rent<\/a> is your perfect partner to bring you the power of QuickBooks on the cloud<\/a>. Contact us to know more.<\/p>\n\n\n\n
How to Reconcile in QuickBooks – Explained<\/strong><\/h3>\n\n\n\n
Why QuickBooks Desktop is Best for Bookkeeping<\/strong>?<\/h4>\n\n\n\n