Reconciling Bank Accounts

 

Bank account reconciliation is a process that defines the difference or discrepancy between the bank’s balance compared to the company’s shown bank statement, as provided by the bank itself. It is also a process to ensure that the company’s records are correct and accurate as compared against the bank’s records.

QuickBooks provides us with stunning speed at reconciling a bank account. To begin this process, choose Banking on the menu and then click on Reconcile. Once a dialog box appears select the account you want to reconcile by clicking on the Account drop down list.

Go to the Statement Date box and click the calendar button to select the correct date. Enter the ending balance shown on your bank account statement. Proceed to the service Charge and Interest Earned boxes and determine the amount and date of the charged transaction on the boxes provided. Then on the Earned boxed define the interest earned on a business account.

After this, review the statement information and make sure that all are correctly inputted. Take your time in doing this since you will not want to reconcile an account if your amount or any information you provided is incorrect. If in any case you have realized that you have entered an incorrect data, you can click on Modify and QuickBooks will display the Begin Reconciliation box again and you can make the necessary changes, then, click continue to go back to the Reconcile window.

In the Reconcile window, your transaction lists your checks and payments on the account. You may check all that has been cleared by your bank and uncheck all that has not. After doing this, the ending balance on your statement should equal the cleared balance. If this happens, you may click Reconcile Now. QuickBooks permanently records your cleared transactions and will display the Register Window. If in any case you can not reconcile an account, you may go back to your unfinished work later on, click on Leave button, to have QuickBooks save your work and may have to come back for it.

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