If you use QuickBooks Pro to manage incoming and outgoing payments, it's a good idea to reconcile your bank accounts regularly. Reconciling your bank accounts means that you make sure that what's on your physical bank statement matches up with what's in your check register. Watch this online video to learn more about the basics of reconciling bank accounts in QuickBooks Pro.
It's always good to reconcile your bank accounts with QuickBooks. This means making sure your physical statement match up with what's in your Quickbooks cheque register. To reconcile, click the Reconcile button in the banking area on the home screen. The first thing you need to decide is which bank account you are going to reconcile. In this case, I have only one bank account and that's my business checking account, so I'll select that one. Choose the statement date that came on your bank's physical statement. Now we know what the beginning balance was, because I haven't actually reconciled this since I put in the starting balance for that checking account.
And normally, if you've reconciled more than once, QuickBooks will use the ending balance from the last time you reconciled, as the beginning balance for the next statement date. Now I already have a reconciliation in progress, so that's how QuickBooks knows what to put in for the ending balance. But what you would do, is look at your bank's physical statement, and write down what they have in the ending balance section. This is what you're going to reconcile against. You can put in any bank service charges, such as, if your bank added a fee for having a checking account with them, and any interest earned in that account.
When you're done, click continue, and now you can start the reconciliation. On the left hand side of the screen, you can see any checks and payments that you sent out. On the right hand side, you can see any deposits and any other credits that came into that checking account. If you'll notice, Quickbooks only includes transactions that occurred within that statement date that we put in in the field before this. In the bottom right of the screen, I can see the ending balance, the cleared balance, which is transactions that QuickBooks knows about, and finally, the difference.
This is what I want to reconcile. So if there's any transactions here that I know what they are, that I recognize, I can put check boxes next to them. You'll notice that when I'm putting check boxes into the deposits and other credits field. My cleared balance is going up. When I put check boxes next to any cheques and payments on the left hand side, the cleared balance goes down. The difference is now between the ending balance and anything that I've cleared within QuickBooks. So there is still a difference here there is something is not adding up.
The fist step would be for me to go to my bank statement and see if there's any line item transaction that I missed. In this case there is one, there was a check that I got for a speaking job but I forgot to put into QuickBooks. So I'm going to click the leave button, I can come back to that later, and I'll go to the record deposits section. Now on my bank statement I can see the date that, that deposit happened, so I don't have to remember. I only have the one bank account that's the one I'm going to deposit it into. And in fact, this deposit occurred on September 12th. So I'll change the date.
I can put the company that I received it from. In the From account, it was for a guest lecturing job, their payment method was check. I won't worry about the check number now. And the amount was for $100. I'll click save and close. And my deposit has been recorded in QuickBooks. Now I'm going to go back to the reconsile box. i'll click continue, because I'm continuing the last reconsiliation. Everything still checked off. I can see my difference here, is a $100. But now there is a new item in this deposits and other credits.
Here's my deposit for $100. I'll place a check box next to it. My ending balance now matches my cleared balance, and there's a difference of zero. I can click the blue Reconcile Now button. I'll click OK at the information box. And QuickBooks is telling me that my accounts are now balanced. I can either display a report summary, or click the Close button. I'm all done until next month.
- Setting up a new company file
- Working with the chart of accounts
- Adding bank accounts and credit cards
- Setting up sales tax
- Adding customer, vendor, and employee profiles
- Billing customers
- Receiving payments
- Handling refunds
- Recording deposits
- Paying employees
- Sharing QuickBooks with others
- Running reports