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Reconciling Bank Accounts

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One of the most important monthly tasks in accounting is bank account reconciliation.  Both QuickBooks Desktop and Online canhelp you along the way in doing this. It’s quite a straight forward process and once you do it correctly, you will want to do it again next month.
Having said that, ensure to have all your data inputted in your company file before any reconciliation takes place- all your bills, checks, deposits, and transfers.

Let’s start step by step:

1. From the Main menu, select Banking > Reconcile, a “Begin Reconciliation” window will appear as shown below. In the Account field, select the appropriate account that you want to reconcile.
The information on the right of Account field – last reconciled on 31/10/2014, is defaulted by your last reconciliation period.

Choose the appropriate date in the Statement Date field.
The Beginning Balance amount should match with your bank statement beginning balance.
Type in your Ending Balance from your bank statement in the box provided.
Enter amount and date of Service Charge if any, and select the appropriate account and Class if you use one.
Enter amount and date of Interest Earned if any, and select appropriate Account and Class if you use one.
Click Continue to open Reconcile window shown in step 2.



QB Reconciliation 1

 

2.  The Reconcile-Chequing window summarizes “Cheques and Payments” which reduce your bank balance on the left box, and “Deposit and Other Credits” which add your bank balance on the right box.
As you can see, it provides date, cheque #, payee, and amount for Cheques and Payments; and date, cheque #, memo, type, and amount for Deposits and Other Credits.
Reconciling means selecting which transactions are cleared through your bank, by check marking transactions in this window. Don’t worry if you mistakenly checkmark transactions, you can just toggle them on & off. In this example, all November 2014 transactions are cleared (check marked).
If you wish to display only November 2014 transactions, you can checkmark the “Hide transactions after the statement’s end date” checkbox.


QB Reconciliation 2


Mark All is a short cut to checkmark all transactions.
Unmark All is a shortcut to uncheck all transactions.
Go To is going into the transaction detail of selected transaction. In this example, the first transaction listed in Cheques and Payment.
Column to Display is to customize columns display.
Modify is to modify any forgotten Service or Interest Charge and bringing you back to Begin Reconciliation window in Step 1.

You can leave the Reconcile window at any time by selecting Leave button.
Your bank statement is reconciled, if and only if the Difference is nil. You then can select Reconcile Now button.

4. After you click Reconcile Now, a Select Reconciliation Report window will appear as shown below. You can select to Display or Print the Summary, Detail, or Both (Summary & Detail) reconciliation report. Or you can Close it if you don’t want to do either.


QB Reconciliation 3



4. Below is the sample of reconciliation report Detail generated:


QB Reconciliation 4

 

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