Best Practices for Bank Reconciliation in QuickBooks Online (QBO)
Keep your books clean, accurate, and audit-ready.
Bank reconciliation might sound intimidating, but it’s one of the most important bookkeeping practices for small business owners. If you’re using QuickBooks Online (QBO), reconciling your accounts regularly ensures that your books match your bank—and keeps your business finances in top shape.
Let’s break down what bank reconciliation is, why it matters, and how to do it right.
What Is Bank Reconciliation?
Bank reconciliation is the process of matching the transactions in QuickBooks Online to your actual bank and credit card statements. It confirms that your records reflect reality and that there are no discrepancies like missing charges, duplicate entries, or bank errors.
Why Reconciliation Matters
Accurate financials: Your reports (like Profit & Loss) are only as good as your data.
Prevents fraud or errors: Catch duplicate charges, missed deposits, or unauthorized transactions.
Smooth tax prep: Clean records make tax filing faster and less stressful.
Better decision-making: Accurate books = smarter business moves.
How to Reconcile in QuickBooks Online
Step 1: Get Your Bank Statement
Grab your latest bank or credit card statement. You’ll need the ending balance and statement date.
Step 2: Go to the Reconcile Tab
In QBO, click the gear icon → Tools → Reconcile. Choose the account you’re reconciling.
Step 3: Enter Statement Info
Enter the ending balance and statement end date exactly as shown on your bank statement.
Step 4: Match Transactions
QuickBooks will show all recorded transactions. Check them off one by one as you confirm they match your bank statement.
Your goal: The difference should be $0.00 when you’ve matched everything correctly.
Step 5: Resolve Discrepancies
If something doesn’t match:
Check for duplicate or missing entries
Review transaction dates and amounts
Use QBO’s Reconciliation Discrepancy Report if needed
Best Practices for Bank Reconciliation
Reconcile monthly: Don’t wait until year-end. Monthly recon helps you stay on top of issues.
Use bank feeds carefully: Just because a transaction downloads doesn't mean it's categorized correctly.
Keep personal expenses separate: Avoid co-mingling funds—it complicates your books.
Flag uncleared transactions: Investigate any old items that haven't cleared your bank.
Work with your bookkeeper or CPA: Especially when handling tricky accounts or past discrepancies.
FAQ
Q: What if my reconciliation is off by a small amount?
A: Don’t force it. Even small errors can grow over time. Investigate thoroughly.
Q: Can I undo a reconciliation in QBO?
A: Yes, but only an accountant user can fully undo a reconciliation. Use with caution.
Q: What happens if I skip reconciliation?
A: Your financials may be inaccurate, making it harder to spot issues or prepare for taxes.
Q: Should I reconcile credit card accounts too?
A: Absolutely. Reconciliation applies to any account where money flows in or out.
Don’t Let Bank Reconciliation Fall Through the Cracks
Clean, reconciled books are the backbone of Doing Business Right. If reconciling in QuickBooks feels confusing or time-consuming, you’re not alone—and help is here.
📅 Book a free call with Dr. Bryan Raya to get your QBO cleaned up and reconciled with confidence.
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