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How To Reconcile Banking Transactions In QuickBooks Online 2016 - YouTube
Channel: FitSmallBusiness
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welcome to the fit small business
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quickbooks online training courts in
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this lesson we're going to cover how to
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reconcile bake accounts in QuickBooks
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Online to follow along with me
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login to your QuickBooks Online account
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now or click the link below for a free
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30-day trial of QuickBooks Online you
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can also click this link to access our
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full QuickBooks Online course and other
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helpful resources let's get started
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similar to your personal bank accounts
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it is important that you reconcile your
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business make account on a monthly basis
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reconciling is the process of matching
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the transactions on your bank statement
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to what you have recorded in QuickBooks
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reconciling your bank accounts regularly
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will help to insure a couple of things
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first any discrepancies between your
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records and the banks are resolved in a
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timely manner for example a bank deposit
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that was posted for the wrong amount by
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the bank second timely notification of
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any fraudulent transactions for example
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if you know the transactions listed on
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your bank statement that you did not
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authorize you can notify the bank as
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soon as possible so that they can
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investigate some of the benefits of
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reconciling your bank account in
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QuickBooks are all transactions on the
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bank statement get recorded in
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QuickBooks your financial statements
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such as your profit and loss statement
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and balance sheet are up to date all the
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reconcile transactions are marked in
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QuickBooks as cleared you are able to
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run reconciliation reports that will
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provide the details of the items that
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have cleared the bank and those that
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remain outstanding before you follow the
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steps to reconcile be sure that you have
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your bank statement handy for the bank
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account that you want to reconcile we
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will refer to the bank statement often
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during this process from the home page
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you want to click on the gear icon
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located to the left of your company name
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below the tools column select reconcile
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from this screen you want to go ahead
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and select from the drop-down the bank
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account that we want to reconcile and
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then we'll go ahead and select the
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reconcile Now button this next screen is
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the start reconciliation window and so
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this information will come directly from
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your bank statement so the first field
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the account that we've already selected
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the second field is the statement ending
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date your bank statement will have a
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beginning date and an ending date so
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enter the ending date for your bank
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statement here the beginning balance
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here is going to come from your bank
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statement as well if the bank account
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was previously reconciled in this field
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will display the ending balance of the
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last month which is the beginning
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balance of the current month and should
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match your beginning balance that
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appears on your current statement the
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ending balance here this is the balance
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in your bank account as of the statement
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ending date so we want to enter the
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ending balance here from our bank
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statement so for example here our ending
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date is January 31st 2016 so we want to
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enter the balance as of this statement
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date in this field and then we'll go
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ahead and click OK on the next screen
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you're going to see the checks and
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payments listed on the left side and the
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deposit and credits are listed on the
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right side so these are all the
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transactions that are currently in
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QuickBooks before we begin to match up
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transactions we want to double check and
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make sure that the information that we
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entered from the bank statement is
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correct
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this information appears at the very
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bottom of the screen to the left if we
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need to edit any information that we
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entered from the bank statement you
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would just click the link that says edit
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information from statement and then it
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will take us back to that first screen
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where we could edit the statement date
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and the ending balance if necessary so
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we'll go ahead and cancel out of that
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since we're fine with both of those the
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next thing you want to do is we want to
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hide transactions that do not fall
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within this statement date so if you
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click this box here that says hai
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transactions after the statements end
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date it will remove any transactions
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after our statement ending date so for
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example our statement ending date is
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January 31st 2016 so any transaction
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dated February 1st and after will be
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removed from this screen so let's begin
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with
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and payments referring to your bank
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statement for each check or payment that
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appears on your bank statement you want
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to go ahead and check it off in the
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reconciliation window by clicking the
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box to the left of the transaction so
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we're going to go ahead and do that for
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each of the items that appear on the
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bank statement and QuickBooks will put a
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checkmark in it once we mark that Bob
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one tip that I'll also give you is as
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you are marking these transactions off
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in QuickBooks with the check mark you
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want to go ahead and put a check mark on
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that paper statement as well and that
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way you can keep track of everything
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that you've marked off and then what
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we'll do is we'll do the same exact
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thing for our deposits and credits so
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that section is a little bit shorter
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we'll mark those two items off as well
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and once we have done that we want to
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check and see what our difference is we
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are trying to match to a balance of zero
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so looks like we are out of balance by
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18.3 four cents so to figure out our out
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of balance the first thing that we want
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to do is make sure that the amounts that
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we have in QuickBooks match our bank
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statement totals so taking a look at our
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deposit and other credits total we want
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to make sure that the total that we show
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in QuickBooks here matches what the bank
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statement has so we'll do that and then
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after you check that and make sure
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that's good you want to double check
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your checks and payments total and make
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sure the total that we have in
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QuickBooks here matches our bank
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statement so it looks like we are out of
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balance here by 18.3 four cents and well
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you know if you look up above I forgot
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to mark an item up here for 18 . 34
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cents so we'll go ahead and put a
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checkmark next to this item and then
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that should put us at a difference of
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zero so once we're at a zero difference
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that's fantastic if you have a
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difference and you're having some
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trouble balancing
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I've shared some troubleshooting tips
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with you later on in this lesson so once
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we've got a zero difference we are able
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to go ahead and click the finish Now
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button and once we click the finish Now
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button that will actually do a couple of
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things behind the scenes QuickBooks will
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mark all the items that we put a check
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mark next to as cleared it will also
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generate our bank reconciliation report
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I want to share a couple of tips with
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you when it comes to bank reconciliation
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reports the first tip is you want to
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create a folder to keep all bank
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reconciliation reports in I recommend
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one folder per bank account the second
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tip I have for you is bank
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reconciliation reports are one of the
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top five reports that auditors will
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request in my experience as an auditor
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if you are unable to produce these
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reports I can promise you that the audit
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will not go well so we'll go ahead and
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click on our reconciliation report
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that's been generated and here we are so
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at the top here you will see a summary
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of the information that we reconciled so
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we've got our statement beginning
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balance and we've got our checks and
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payments total our deposits and credits
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our ending statement balance and our
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register balance most important this was
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the goal of reconciling is to make sure
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that we match up our bank statement
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balance with our QuickBooks register
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balance so as you can see both of these
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match and then we've got the details of
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all the items that were cleared here for
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this particular reconciliation so if
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you'd like you can all go ahead and
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print this report out and share it with
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those that need to review the report
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let's talk about ten troubleshooting
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tips for reconciling bank accounts in
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QuickBooks try some of these tips if you
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are having trouble getting to a
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difference of zero first tip I'll share
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with you is when you first go into the
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reconciliation tool after you enter the
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statement ending balance and the
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statement ending date if there are no
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transactions
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that appear on the screen then there are
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one of two things that could be causing
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this issue the first is you may have
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transactions sitting in review waiting
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for you to categorize them and add them
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to the QuickBooks register in our lesson
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on managing downloaded banking
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transactions we walk through step by
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step to show you how to review your
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downloaded banking transactions and add
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them to the QuickBooks register click
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here to watch that video tutorial now
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the second issue that could be taking
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place is you might have entered
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incorrect information from the bank
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statement so remember how we check that
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earlier in the lower left-hand corner of
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the screen there's a link that says edit
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information from this statement so if we
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select that we can double check to see
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if our ending statement date is correct
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and our amount is correct so we'll go
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ahead and do that now and yet looks like
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I have entered the incorrect year so
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we'll go ahead and change that and click
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OK voila we have transactions so the
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next tip that I want to give you is you
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want to narrow the search down to the
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type of transaction so in this example
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as you can see we have a difference of
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two thousand five hundred forty seven
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dollars and some change so you want to
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figure out if that difference is on the
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checks and payment side or on the
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deposits and credit side so again to do
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that you want to look at your total in
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QuickBooks and compare that to your bank
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statement for each of those and to see
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which one is out of balance now if both
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of those are out of balance then tackle
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them separately balance the credits and
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deposits first if that's shorter and
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faster and then go over to the checks
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and payment side and do that you can
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also for the exact dollar amount that
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you are off so if you recall when I
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reconciled the bank statement a few
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minutes ago we had an exact amount that
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I had forgotten to check off
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and so by simply looking for that dollar
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amount on the screen here in QuickBooks
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and then if you can't find it you can
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also look on your bank statement so if
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you looked at our bank statement to see
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if we could find an item for two
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thousand five hundred forty seven
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dollars and 25 cents that might help you
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figure out what the problem is as well
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next tip is triple check the information
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that you entered from the bank statement
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so we've done this a couple of times but
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it is important that you make sure you
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didn't transpose a number or enter the
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date incorrectly as I just did
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so again clicking that edit information
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from the statement link will help you to
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verify that information the next tip is
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to check and see if there is any
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transaction in the reconcile window that
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you did not check mark next to right so
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that's what I did earlier that we
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discussed and so if that transaction is
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on the bank statement then it should
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have a check mark next to it in the
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reconcile window if you do have a
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transaction on your bank statement that
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is not in QuickBooks then you will need
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to add it to QuickBooks okay so to do
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this what you want to do is go ahead and
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click the finish later button now
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remember the finish later button will
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save all the work that you've done so
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far so you can easily come back and pick
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up where you left off okay if the
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missing transaction is in the checks or
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payments section then you want to enter
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it as you normally would in our how to
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write and print checks lesson we walk
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you through step by step on how to
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create a check in QuickBooks click here
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to watch this video tutorial now if the
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missing transaction is in the deposits
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or credit section then enter it as you
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normally would in our how to make
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deposits lesson we walk you through step
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by step on how to record deposits in
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QuickBooks click here to watch this
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video tutorial now next step take a
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break if you've been at it for a while
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you probably need a break so go ahead
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and click that finish later button to
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save your work and then you can easily
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pick up where you've left off sometimes
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taking a breather and coming back and
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help you spot what's causing the
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difference
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and the last tip is while it might be
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tempting do not click that finish Now
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button until you have a difference of
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zero here the problem will not go away I
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promise you the difference will just
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carry over to the next month until you
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figure it out if you do hit the
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reconcile button and you have not
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figured out the difference QuickBooks
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will record the out of balance and a
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miscellaneous expense account call on
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reconcile discrepancies of course if
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we're talking to small amount like five
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dollars or less then it might be worth
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your while to move on at the end of the
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day you get to determine what amount you
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are comfortable with reconciling your
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bank accounts does not change your
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financial statements however behind the
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scenes in QuickBooks the items that have
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been reconciled are flagged so let's go
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ahead and navigate to the check register
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and take a look at these now to navigate
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to the track register we'll go back to
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our home screen will click on
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transactions and then banking and then
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you want to click on view register to
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the far right and notice in this column
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the letter R so every reconcile check
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and deposit will have the letter R in
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this column typically once a bank
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transaction is reconciled you do not
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want to make any changes to it this is
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primarily due to the fact that you have
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balanced it with your bank statement you
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can edit the account if you need to if
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you categorize something as meals and
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entertainment and it should have been
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office supplies that's fine but you do
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not want to make any changes to the date
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or the amount if you do it can cause
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your financial statements to be
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inaccurate and you will no longer be in
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balance with your bank that wraps up the
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lesson on how to reconcile your bank
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accounts in QuickBooks Online to access
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our full QuickBooks Online course or any
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of the other lessons in this series
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click this link you can also find a link
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below this video for a free 30-day trial
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of QuickBooks Online if you have
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feedback about this course or if you
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have any questions please leave a
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comment below also don't forget to
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