In this tutorial, we will look at how to do a bank reconciliation in quickbooks.
This feature is quite useful in that you do your reconciliation inside quickbooks, and you can always retrieve any reconciliation either as a summary or detailed with the click of a button.
The following are the steps that are involved during the reconciliation.
- After opening quickbooks, go to the quickbooks menu and look for the “bank” option, and click the option.
- Under the bank option, scroll down and look for the “reconcile” option. Click to open
The following are the fields that are needed to commence your reconciliation
- Account– you select the bank that you want to reconcile
- Statement date– this is the last date for which you want to reconcile
- Ending balance– this is the bank statement balance – as at the statement date in (2) above
- Service charge and interest earned – if there is any interest earned or service charge then input the details (amount, date and account) in the sections provided.
- Once all that is done, click on continue
This will open the reconciliation sheet, which has two sections. The cheques and payments side and ,deposits and other credits.
The first column on either side is where you tick each every transaction that has cleared in the bank statement.
At the bottom right corner of this sheet, there are sections that show the balances. These are interest earned, service charge, ending balance, cleared balance and difference.
Ending balance – this is the balance as per the bank statement as at the reconciliation date.
Cleared balance- this relates to the total of the transactions that have been cleared in the bank statement.
Difference – this is the one that is used to test whether you account is reconciled. Once your reconciliation is done, the difference should be nil.
Once this is done, click on “reconcile now”. Quickbooks will perform the reconciliation and produce a reconciliation report.