QuickBooks Tip: How to Reconcile Accounts in QuickBooks Online
If you're managing your own small business finances or just getting started with QuickBooks Online, understanding how to reconcile your accounts is critical. Account reconciliation is one of the most important bookkeeping tasks to ensure your financial records are accurate and tax-ready.
What Does Reconciling Mean in Bookkeeping?
Reconciling your accounts means comparing the transactions in your QuickBooks Online records to your actual bank or credit card statements. This helps you identify any discrepancies such as duplicate entries, missing transactions, or bank errors — which can lead to incorrect financial reports or costly tax mistakes.
How to Reconcile Accounts in QuickBooks Online
Log in to QuickBooks Online.
Go to the left-hand menu and click on “Accounting”, then “Reconcile.”
Select the account (e.g., checking, credit card) you want to reconcile.
Enter the ending balance and statement date from your bank statement.
Match transactions from QuickBooks to your bank statement line-by-line.
Once the difference is $0.00, click “Finish Now.”
Tip: Reconcile monthly to avoid a backlog and catch mistakes early.
Best Practices
Always reconcile accounts after your monthly bank statement arrives.
Attach receipts and notes in QuickBooks for easy audit tracking.
Work with a bookkeeper to handle more complex accounts or historical reconciliations.
Common Mistakes to Avoid
Ignoring small differences in your reconciliation reports.
Forgetting to record bank fees or interest.
Reconciliation only at year-end (monthly is much better).
Not reconciling all active accounts (yes, even PayPal and credit cards).
FAQ
Why is reconciliation important in bookkeeping?
It ensures your books match actual cash flow and prevents tax filing errors.
Can QuickBooks reconcile automatically?
QuickBooks can suggest matches, but a human eye should always review and confirm.
How often should I reconcile accounts?
Every month — ideally right after receiving your bank statement.
What if my accounts haven’t been reconciled in months?
That’s a sign you need professional help. Cleanups can prevent bigger problems during tax season or audits.
📞 Need help reconciling your accounts or reviewing your QuickBooks setup?
Book a free call with Dr. Bryan Raya, QuickBooks ProAdvisor:
👉 https://calendly.com/dbr_bookkeeping/book-a-free-call-with-dbr
Let’s start Doing Business Right.
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