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What Does “Reconciling” Actually Mean?
If the word “reconcile” makes you sweat, you aren’t alone. But let’s demystify it: Reconciling is just a fancy accounting word for comparing notes.
You are simply looking at your Bank Statement (the truth according to the bank) and comparing it to QuickBooks (the truth according to you).
If they match? Great. You’re done. If they don’t? Something is missing or duplicated.
You should do this once a month. If you wait until tax season to reconcile 12 months at once, you will hate your life. Do it monthly, and it takes 10 minutes.
The Pre-Reconcile Checklist
Before you hit that start button, you need two things ready:
- Your Official Bank Statement: PDF or paper. You need the Ending Balance and the Ending Date from this document.
- All Transactions Entered: If you haven’t put your data into QuickBooks yet, stop reading. You need to get that data in first. (Internal Link Suggestion: check out our guide on How to Import CSV Files into QuickBooks Online if you need to bulk-upload data first.)
Step-by-Step: How to Reconcile Accounts in QuickBooks
Ready? Let’s get your books to balance.
1. Go to the Reconcile Tool
Log in to QBO. On the left sidebar, go to Bookkeeping (or Transactions) and select Reconcile.
2. Enter Statement Details
Select the account you want to check (e.g., Checking or Credit Card). QuickBooks will ask for three numbers from your bank statement:
- Beginning Balance: This should auto-fill. (If it doesn’t match your statement, see the Troubleshooting section below).
- Ending Balance: Type this exactly as it appears on your bank PDF.
- Ending Date: The date the statement closes (e.g., Jan 31st).
Click Start Reconciling.
3. The Matching Game
You will now see a screen with a list of transactions.
- The Goal: You want the big number at the top labeled “Difference” to hit $0.00.
- The Process: Look at your bank statement. If you see a charge for $50.00 to “Office Depot” on the statement, find it in QuickBooks and check the circle next to it.
If you have your bank feeds connected or you successfully [imported your CSV file], most of these might already be checked off for you.
4. Finish Now
Once that “Difference” field turns green and says $0.00, you win. Click the Finish Now button in the top right.
Help! My Difference Is Not Zero
You checked everything, but QuickBooks says there is still a difference of $25.50. Don’t panic. Here is usually why that happens:
1. The “Beginning Balance” is Wrong If the opening number doesn’t match your statement, it means someone changed a transaction from a previous month that was already reconciled. You can usually click a link right next to the error that says “We can help you fix it.”
2. Duplicates (The most common culprit) Did you manually type in an expense and import it via CSV? You might have the same charge listed twice. If your difference is exactly the amount of one transaction, you probably have a double entry. Delete one.
3. The Forgotten Fee Did the bank charge you a $15 service fee? If you didn’t enter that into QuickBooks, your numbers won’t match. You can add it directly from the reconcile screen using the + New button.
Conclusion
Learning how to reconcile accounts in QuickBooks is the single best way to keep your business audit-proof. It proves that every dollar you claim you spent actually left your bank account.
Make this a monthly ritual—maybe with a coffee in hand—and your tax accountant will love you for it.