How To Use QuickBooks Online To Reconcile Accounts?
All firms require financial statements in order to show profit and loss appropriately. A company owner is also likely to overdraw or overcharge an account if they do not have accurate information on the balances in their checking, savings, money market, and credit cards. Reconciliation is a process for detecting errors, fraud, missing payments, and duplicate entries. If you are interested in learning the reconciliation process, pursue QuickBooks online training certification from Universal Accounting.
It's also the process of reconciling all deposits, expenses, charges, and other transactions in your accounting software with the statements you receive from your bank or credit card company.
Use the business icon gear in the top right corner of the QBO screen to do the following:
→ Choose "Tools", then "Reconcile" option
→ Click on the account you want to reconcile from the Account dropdown box.
→ Verify that the initial balance on the bank or credit card statement matches what is in QBO.
→ Your statement's final balance and date should be added together.
→ Some accounts, in general, will include a section where you may enter service charges and interest earned. Before you start reconciling, enter them and then pick "Start Reconciling."
→ Suppose there is no opportunity to submit service charges and interest. In that case, you may manually enter them, or they may have come across with the other transactions from your bank or credit card provider.
→ Proceed to the reconciliation screen to see what has to be done.
→ To include all transactions shown, use the top right tick-box on the reconcile screen. QBO will check all of them first, and you can then decide which ones should be unchecked.
→ Everything is balanced if the balance at the top is $0.00. You may now use the "Finish Now" button. Congratulations!
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First, double-check that the beginning and ending balances are right. If the beginning balance is incorrect, it's possible that you changed, removed, or added a transaction since the previous month's reconciliation. Don't be alarmed if you see a difference; you're on your way someplace.
It's better to go over all of the transactions next to see if any haven't been cleared yet. This generally refers to posted transactions but not cleared at the end of the month.
Choose "Save for Later" if you need to exit the screen. After doing some research, return to the reconciliation screen to find and fix the problem.
Print off your reconciliation and staple it to the statement if you want a printed copy. All of your reconciliations should be kept in a monthly or quarterly file to ensure that the information is easily available.
Wrapping Up
Keep in mind that differences should be addressed at once to avoid future issues. Reconciliation in every area will protect you from inaccurate reporting and make tax time easier.
Reconciling on a regular basis will maintain all of your records clean and ready to use at any time. Due to a time crunch or a lack of faith in the procedure, business owners frequently postpone or avoid reconciling, which may be devastating. QuickBooks is often regarded as a very complex and important piece of software. Since its inception over two decades ago, it has proven to be excellent software for organizations and enterprises of all sorts and sizes. QuickBooks is a must-have piece of software for every business, whether you're just starting out or already have one. The QuickBooks accounting classes online considerably simplify and streamline accounting, monitoring, and reporting, making it far easier to manage your company's finances. For more information, please visit us at universalaccountingschool.com/quickbooks-specialist-certification.