How to Reconcile a Bank Account in QuickBooks Online

To reconcile a bank account in QuickBooks Online, open the correct bank or credit card account, start the Reconcile tool from that account screen, and enter the statement ending date, ending balance, and any service charges or interest shown on the statement. Then match only the transactions that cleared, fix any missing or duplicated items before you finish, and save the reconciliation only when the difference is zero.

What you need before you start reconciling

Have these ready before you begin:

• The bank or credit card statement for the period you are reconciling.
• Access to the correct QuickBooks Online company file.
• The correct account open in QuickBooks, especially if you manage more than one checking or credit card account.
• Opening balance information if this is the first time you are reconciling that account.

If this is the first reconciliation, the opening balance in QuickBooks must match the real starting balance for the account. If it does not, stop and fix that before you continue. A wrong opening balance will throw off every later reconciliation.

Steps

1. Open the exact bank or credit card account you want to reconcile in QuickBooks Online.

If you see more than one similar account, stop and confirm the account name against the statement before you continue. Do not start from the wrong register.

2. Start the Reconcile tool from that account screen.

In QuickBooks Online, use the Reconcile action attached to the account itself so QuickBooks uses the correct register.

3. Enter the statement ending date, ending balance, and any service charges or interest shown on the statement.

Use the date and ending balance exactly as they appear on the statement, not the balance from your bank feed or register. If QuickBooks asks for service charges or interest, enter them only if they appear on the statement.

4. Match the cleared transactions to the bank statement.

Check off only the deposits, payments, charges, and credits that actually cleared during the statement period. Leave out anything that has not cleared yet. If a transaction is on the statement but not in QuickBooks, stop and enter it before you try to finish. If a transaction is in QuickBooks but not on the statement, do not mark it.

5. Fix missing, duplicated, or uncategorized transactions before you finish.

If the difference is not zero, do not force the reconciliation through. Review the account register for a missing transaction, a duplicate, the wrong date, the wrong account, or an amount that was categorized incorrectly. Correct the transaction first, then return to the reconciliation screen and match it again.

6. Confirm the difference is zero, then save the reconciliation result.

When the difference reaches zero, finish the reconciliation and save it. QuickBooks should then mark the period as reconciled for that account.

What to do when the difference will not go away

If the reconciliation still will not balance after you review the statement line by line, look for one item that does not belong in this account or period. The most common problems are a duplicate entry, a missing deposit or payment, a transaction posted to the wrong bank or credit card account, or a fee or interest item that was left uncategorized.

Do not try to fix the difference by changing the ending balance. Use the statement as the source of truth and correct the QuickBooks transactions instead.

Conclusion

After you save, the reconciliation should be recorded for that statement period, and the account should show a zero difference for that reconciliation.