Reconciling your accounts is necessary so that your bank and credit card statements turn out to be the same.
Just like a checkbook which needs to be balanced, your account in QuickBooks needs to be reviewed to ensure they do not differ from the real credit card and bank statements. This whole process is termed as reconciling.
It is always recommended to reconcile your savings, credit card accounts, cheques, etc. every month without fail. Once you receive your bank account statements, the list of transactions should be compared with the ones entered in QuickBooks.
If everything turns out to be okay and error-free, it means your account is accurate and is properly balanced.
Why do you need to finalize reconciliation in QuickBooks non-profit?
Ideally, reconciliation should be done every month and around the same time.
This is because when QuickBooks matches with your bank or credit statements, you will have the exact idea where you have spent your money and how much you have earned.
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Note: The ending balance of the earlier month must be the same as the beginning balance of the subsequent month. Also, your QuickBooks balance at the end of the last month must match with the bank statement.
How to finalize reconciliation in QuickBooks non-profit?
- Evaluate your opening balance.
- Set up the reconciliation by entering all the transactions for the bank statement period you wish to reconcile.
- Begin your reconciliation, once you receive your bank statement.
Step 1: In the Banking menu, choose Reconcile.
Step 2: In the specific Account field, choose the credit card or bank account that you wish to reconcile.
Step 3: The statement date gets filled in automatically.
Step 4: The Beginning Balance also gets filled in automatically by QuickBooks, since it uses the specific ending balance from the last reconciliation.
Step 5: In the Ending Balance field, type in the ending balance as it is displayed on the bank statement.
Step 6: Review all the fields entered and if everything is accurate, choose Continue to begin reconciling.
- Compare your QuickBooks with your bank statement
- Keep clearing transactions until the Difference field becomes zero
Reconciliation in QuickBooks is a very imperative step, since it shows the authenticity of the chart of accounts, register, bank feeds, etc.
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The common challenge in QuickBooks reconciliation is the mismatch between the accounting records. This also helps detect any kind of fraudulent transactions and also warns the customer about any kind of looming issues.
For all those business owners who wish to reconcile in QuickBooks, the above-mentioned steps will do the trick. It is no rocket science and can be done by anyone. Still, if you feel less confident, hire the services of a certified professional.
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For all kind of technical assistance and help, feel free to connect with QuickBooks experts at our Live Chat.
