- Go to Banking then Reconcile
- In the Account box, select the bank account to be reconciled
- Enter the Statement Date (usually the last date on the bank statement)
- Enter the ending balance (usually the last number appearing on the bank statement)
- Select Continue
- Select “Hide transactions after the statement date”
- Verify that the Cleared Balance (bottom right) is the opening balance on the bank statement. If not, there is a problem with your previous reconciliation that should be fixed first.
- For each transaction appearing on the bank statement, check off the corresponding entry on the QuickBooks Reconcile screen. Reconcile items in the same order they appear on the bank statement. Cheques are listed in cheque # order
- If the item does not exist in QuickBooks, open the Write Cheque or Make Deposit screen and enter the transaction. For example, to enter service charges, prepare a QuickBooks cheque for the amount of charges. On the expense tab, choose the Interest, Bank Charges account. Once the cheque is saved, it will appear on the Reconcile screen. For interest earned, Make Deposit for the amount of interest. In the From Account column choose the Interest, Bank Charges account.
- When all items on the bank statement are checked off, the difference on the bottom right hand corner of the screen should be $0.00. Click Reconcile Now, print the detailed report and file it with the bank statement.
- If the difference is not $0.00, the bank is not reconciled. Try to locate the transaction(s) causing the difference. You will either have to enter a missing transaction or uncheck a transaction that was checked in error. A small difference can be cleared by creating a cheque (or deposit) for the difference. Use the Interest, Bank Charges account for these miscellaneous transactions. DO NOT Reconcile Now if the difference is not $0.
Review any old cheques or deposits that are not checked off.
TIP: To determine if an amount was previously entered in QuickBooks, click the Ctrl+ F keys simultaneously to open the Find screen. Click the Advanced tab, and in the Choose Filter section, select Amount. Mark the = box and enter the desired amount in the adjacent box. Click Find. You can also search for a cheque number.