This document provides instructions for reconciling bank accounts and credit cards in QuickBooks, including how to match transactions, find and correct errors, handle bounced checks, and generate reconciliation reports. It also discusses online banking and reconciling accounts each month.

1. 2013

2.  Reconcile your checking account
 Create bank reconciliation reports
 Find errors during reconciliation
 Correct errors found during reconciliation
 Make corrections when QuickBooks
automatically adjusts the balance in a bank
account
 Handle bounced checks
 Reconcile credit card accounts and record a
bill for later payment
 Online Banking

3.  Bank account should be reconciled each
month
 To reconcile a bank account:
◦ Select the Banking menu, and then select Reconcile
and select account
◦ Check Beginning balance should match the bank
beginning balance
◦ Enter statement date, Ending balance, service
charge and Interest earned

4.  Match each line with the bank statement:
◦ Match the deposits and other credits
◦ Match the checks and other withdrawals on the
bank statement
 Difference field should be 0.00 when finished
 Click Reconcile Now
 To pause reconciliation, click Leave

5. The difference
here must be 0.00.
Click here if you want to
see only transactions
before the statement
ending date.

6.  After a successful reconciliation you can
generate
◦ Reconciliation Summary report
◦ Reconciliation Detail report
 Select Previous Reconciliation Report displays:
◦ Select Summary or Detail option
◦ Click Display to view the report
◦ Click Print to print the report

7.  The Beginning Balance Field error:
◦ One or more reconciled transactions were voided,
deleted, or changed since the last reconciliation
◦ A user removed the checkmark from one or more
reconciled transactions in the account register
since the last reconciliation
 Incorrectly Recorded transactions
◦ Discrepancy between a transaction in QuickBooks
and a transaction on the bank statement

8.  Option 1: Use the Reconciliation
Discrepancy Report
◦ Review the report for any changes to cleared
transactions
◦ Enter the corrections
 Option 2: Undo the Bank Reconciliation
◦ In the Begin Reconciliation window, select the
bank Account and click Locate Discrepancies
◦ Click Undo Last Reconciliation

9.  If you made the error
◦ Make the correction
 If the bank made an error
◦ Enter a transaction in the bank account register
to adjust your balance for the error
 To void a check, double-click the
transaction in the Reconcile window, select
the Edit menu and select Void Check and
then return to Reconcile window

10.  QuickBooks automatically makes a reversing
entry using the date of the current bank
statement and same account that you used
on the original transaction
 The two transactions cancel each other out

11.  If the difference is not zero when you click
Reconcile Now in the Reconcile window:
◦ A transaction is created in the bank account for the
difference
◦ The transaction is coded to the Reconciliation Discrepancies
expense account
 To Correct the problem:
◦ Delete the transaction that is coded to Reconciliation
Discrepancies
◦ Undo the Last Reconciliation
◦ Perform the bank reconciliation again correctly

12.  Bounced checks are also know as NSF (non-
sufficient funds)
 Add two new transactions to your bank
account register:
◦ one for the amount of the check that bounced
◦ one for the fee charged by the bank
 To charge your customers a service fee for
processing their NSF check, enter an Invoice
for the customer

13.  Enter transaction in the bank account register
and code it to Bank Service Charges using the
actual date that the bank charged your
account
 If your vendor charges an extra fee for
bouncing a check, enter a Bill (or use Write
Checks) and code the charge to the Bank
Service Charge account

14.  Credit card accounts should be reconciled
every month
 After the reconciliation of credit cards,
QuickBooks asks if it should:
◦ Write a check for payment now
◦ Enter a bill for payment later
 If you don’t want to pay the whole amount
due on a credit card, edit the original Bill to
match the amount you actually intend to
pay

15.  Processing Transactions Online

17.  Reconcile your checking account
 Create bank reconciliation reports
 Find errors during reconciliation
 Correct errors found during reconciliation
 Make corrections when QuickBooks
automatically adjusts the balance in a bank
account
 Handle bounced checks
 Reconcile credit card accounts and record a
bill for later payment
 Online Banking