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You can think of reconciling your accounts like balancing your check book. When you reconcile your spending accounts, you compare your bank records with your Quicken register so you can be certain that neither you nor the bank has recorded any transactions incorrectly. First you should know that reconciling your account is optional. It's just a way of giving you extra confidence that both your online balance, and your Quicken account register balance are accurate. When you balance or reconcile an account, you compare your Quicken account records, against your online current bank statement and resolve any differences between the two.
Reconciliation can be affected by transactions that occurred in the period shown on your current bank statement, as well as by earlier transactions. For online enabled spending accounts, you have a choice, you can compare the transactions, and click into your paper bank statement, or you can compare them to your latest online balance. If there are any spending or savings accounts that you track manually, the process of reconciling is simply to compare the transactions and click into your paper bank statement. For cash accounts, all you need to do is update the account balance to the cash on hand.
Let's talk about how to reconcile an account with your online statement, this is the preferred way of reconciling, especially if you're downloading transactions from your bank. Let's walk through the process for reconciling a spending account to an online balance. When you use this method, Quicken reconciles your Quicken account to the latest downloaded data. So first, make sure you download your latest transactions, and accept the transactions into your register. From within the account register, click the Account Actions icon, and then choose reconcile, in the Reconcile Online Account window, select Online Balance.
By default, when you reconcile your account, you'll always see the Reconcile Online Account dialog. If you select the always use online balance for this account checkbox, Quicken automatically uses your online balance for that specific account, you'll no longer see the Reconcile Account Online dialog every time you reconcile. If you select this check box, auto reconcile downloaded transactions, click automatically marks your downloaded transactions as Reconciled, if they match transactions already in your register. In the future, Quicken will prompt you to reconcile if the transactions don,t match.
This is just a great time saver, because now, you'll only be alerted if there's a problem and reconciliation will happen automatically. Click OK to start the reconciliation check as you can see in the next window, Quicken checks every deposit and payment in your Quicken register to check, every green check mark denotes a check transaction. If the difference between your account register and your online statement is zero, that means your account matches, and you have reconciled your accounts. Say I'm using a sample account with sample data here. The online balance doesn't match the Quicken register balance, If your account balances don't match, you may need to do a one-step update to download the latest transactions, I'll click done, and I'm just going to adjust my account balance.
A pop-up window may appear on your statement asking if you'd like to create a reconciliation report If you do, click Yes, and you can follow the prompts to fill one out. A pop-up window may also appear, asking if you want to pay the account now, If you do, click Yes, and follow the prompts. You'll notice now that all the transactions were reconciled, and they'll have a little R in the CLR, clear column, denoting that they've been reconciled with the bank. The text for reconciled transaction will also turn a lighter shade of grey, to show that all these transactions have been reconciled.
Reconciling your accounts can be a pain, but if you use online banking it can be almost painless. All you need to do is turn on automatic reconciliation, when you reconcile. Let's take a quick look at how to reconcile a cash account, click on your Cash Account, in the Account Actions drop-down, select Update Balance. Enter the amount of cash that you have on hand currently, as the cash balance. Enter the date, and enter a category for the adjustment transaction. Click OK. The first time you reconcile each of your spending accounts, remember to set the account to automatically reconcile, Quicken will alert you if there are any transactions that need to be adjusted.
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