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- Reconcile an account with its financial statement
How do I reconcile an account in QuickBooks with its financial statement?
Updated: May 31, 2011
Article ID: HOW15515
- From the QuickBooks Banking menu, choose Reconcile.
- Enter or select the appropriate account in the Account field.
- Compare your statement’s opening balance with the amount shown in the Beginning Balance field.
If you reconcile regularly and the QuickBooks Beginning Balance differs from the beginning balance on your statement, the discrepancy could be caused by clearing a transaction directly in the account register (as opposed to the Reconcile [Account] window), or by changing or deleting a previously reconciled transaction.- Enter your statement’s ending balance in the Ending Balance field.
- Enter any new service charges, finance charges, or interest earned from your statement.
- Click Continue to open the Reconcile [Account] window.
- Now you are ready to reconcile individual transactions. When you find a transaction that matches one on the statement, click the tick column - the tick means that transaction has cleared.
- For each transaction that you clear, verify that it matches one on the statement. If the transaction does not match and the statement is incorrect, please contact your financial institution. If the statement amount is correct:
- Double-click the transaction in QuickBooks to display it.
- Correct the error, and then click Save & Close.
- Click the corrected transaction to clear it.
- When you have finished clearing transactions, look at the Difference amount in the bottom right corner of the Reconcile [Account] window.
- If the amount is 0.00, click Reconcile Now. You have successfully reconciled the account with the statement.
- If the amount is anything other than 0.00, the account does not balance for the period of time covered by the statement. Choose one of the following options:
- Start again at step 3, making sure that all amounts and transactions have been recorded correctly.
- Click Reconcile Now, and then click Enter Adjustment to finish the reconciliation for the time being. (QuickBooks will enter an adjustment to your account.) Eventually, however, you should locate and correct the cause of the discrepancy.
If you click Leave in the Reconcile [Account] window before you are completely finished, QuickBooks will retain the transactions you marked.
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