Reconciling accounts

Reconciling is the process of making sure your QuickBooks records agree with your bank and credit card statements. At a minimum, reconciling should take place on a monthly basis, if not more often. One of the benefits of using cloud-based accounting software such as QBO is that your banking information is uploaded on a daily basis. This means that you could reconcile as often as weekly, or even daily. There is no need to wait until the bank statement arrives at the end of the month to reconcile your accounts.

Follow these steps to reconcile a bank or credit card account:

1. From the gear icon, select Reconcile, as indicated in Figure 9.14:

Figure 9.14: Navigating to Reconcile in QBO

2. The Reconcile window will appear, as indicated in Figure 9.15:

Figure 9.15: Initial reconciliation window

3. If a transaction that was previously reconciled has been changed, QuickBooks will include a message on this screen...