How to Reconcile Workflow in QuickBooks Online

Last Updated on November 2, 2020 by Editor Team

Want to keep your QuickBooks accounts accurate? Then reconcile workflow in QuickBooks Online, by checking , and reviewing the accounts, checkbooks, with your bank and credit card statements. Here we can make your work simpler through this article. Yes, today, Accountwizy is here with a new article to reconcile workflow in QuickBooks Online. Are interested to know about this? If yes, then connect with us till the end of the content.

Save Time & Effort
Get help from expert

Get your accounting work done by experienced accountants. Fix all your accounting software errors & problems. Dial our toll-free number +1-888-461-1179.

QuickBooks Online is the process of matching transactions against your bank or credit card statements. A fundamental part of good bookkeeping is routine account reconciliation, the process in which you match your transactions in QuickBooks Online with your bank statements and credit card statements.

Apart from being as fun as it sounds, to ensure that your bank accounts match your accounting system and that you are not at risk of overspending depending on what is actually in the bank. This is a similar process to balance your checkbook.

Things You Should Know Before Starting Reconciliation

You want to know exactly what we are talking about here, so it is helpful to familiarize yourself with some important words.

  • Starting Balance:- The number of funds at the beginning of a new or financial period (outstanding for your bank account or credit card accounts).
  • Date of Commencement: – The date of a new financial period or statement month begins
  • Final Balance:- The number of funds (outstanding for your bank account or credit card accounts) at the end of one month or financial period.
  • Payments:- These are money-out transactions such as checks and electronic payments.
  • Deposits:- These are the money transactions that you receive from customers.
  • Last Date:- Last date of the last financial period/statement month.

Advantages of Reconciliation

  • The starting balance on your bank statement for a given month should match the ending balance for the previous month.
  • If you see a discrepancy there, it means that none of your previous records have been properly integrated.
  • This can help everyone to consolidate deposits at the same time, and then focus on payment or vice versa. This prevents your head from rotating when you try to switch columns continuously.
  • If you are frustrated or tired while harmonizing, take a break. Nothing makes more mistakes than a crazy brain.
  • You can also consider harmonizing on a more frequent basis, such as weekly or bi-weekly, to reduce the amount of time required for reconciliation sessions.

Procedure to Reconcile Workflow in QuickBooks Online

Here is the proper guidance to reconcile workflow in QuickBooks online, keep attention, and follow the steps carefully.

Procedure to Start Reconcile

Here we have put the details below, how you can start your reconciling process in QuickBooks Online, and how you can complete its details.

Check Account Opening Balance

In this process, when you create a new account in QuickBooks to track a bank or credit card account, that time it’s necessary for you to enter an initial balance.

And if you consolidate the account for the first time, then check the starting balance, and make sure it is accurate.

  • QuickBooks Online:- In this software, you can enter a Starting Balance
  • QuickBooks Desktop:- In this software, you can enter an Initial Balance

Reconcile or Recover the Account

If once you receive your monthly bank statement, then you can start consolidating your accounts. You will compare each transaction in QuickBooks to that recorded in your bank statement. At the end of the reconciliation, the account difference between QuickBooks and your bank statement should be $ 0.00.

  • QuickBooks Online:- In this software, you can reorganize an Account
  • QuickBooks Desktop:- In this software, you can reorganize an Account

Procedure to Fix Reconcile

Here we have put the details below, with the help of these details you have to know how you can fix your reconciling process in QuickBooks Online, and how you can complete its details.

Sometimes things are missed it is bound to happen every once in a while. If you find a mistake in a reconciliation, here is the process to correct it. Review each part of your reconciliation in this specific order. We know that it can be difficult. If you are new to reconciliation or need more help, reach out to your accountant. This process can be difficult and they know how to handle the next steps.

Reconcile an Account for the First Time

If this is your first time consolidating an account, review the initial balance in QuickBooks. Make sure it matches the balance in your real-life account for the day you have chosen. If it is not, do not worry. Here’s how to fix common problems:

  • QuickBooks Online:- You need to fix Balance Issues to complete this process
  • QuickBooks Desktop:- You need to fix balance issues to complete this process

If you forgot to enter an opening balance and you are already tracking transactions in the account, do not worry. Here, the first thing you need to know is what you can do when you already have been tracking QuickBooks transactions, and forget to enter an opening balance.

Before the initial balance of your account is come and that time, if you have recently entered into old transactions then you need to know about how to reconcile them and their all process.

Reorganize your Previously Matched Account

If you have consolidated an account in the past, review the beginning balance in QuickBooks. The opening balance in QuickBooks must match the starting balance and date on your bank statement.

  • QuickBooks Online:- You need to know how to fix Beginner Balance Problems and do this process
  • QuickBooks Desktop:- In this software, if you want to fix beginner balance issues, then do this process carefully

Fix Issues During Reconciliation

If you have already reviewed your starting and starting balance, then pay attention to the ending balance in QuickBooks. At the end of reconciliation, the difference between the ending balance in QuickBooks and your bank statement should be $ 0.00. If there is still a difference, your accounts are not balanced.

  • QuickBooks Online:- Fix Issues While You Are Harmony
  • QuickBooks Desktop:- Fix issues when you are reconciling

Edit Completed Reconciliations

If you need to make changes after reconciling, then you need to start by reviewing the previous reconciliation report. And if you have accidentally covered a transaction or it is an error, then you can stop the individual transaction.

If you have adjusted a reconciliation or need to undo the whole thing, reach out to your accountant. These types of changes can complicate and quickly unbalance your accounts. Your accountant knows the correct steps.

Retrieving your records has never been easier, and making sure it is correct is the best way to ensure that your company’s records are correct and up-to-date. Remember, the longer you adjust, the bigger the problem.

Final Note

Finally, we completed the procedure. We hope you like it, and now you are able to reconcile workflow in QuickBooks Online. Just follow the steps carefully. Further, if in case, you have any problem following the procedure then, you can get our QuickBooks ProAdvisor support for instant help.

How to Reconcile Workflow in QuickBooks Online