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Step 2: Bank Reconciliation in QuickBooks Online

Now that we are done with syncing your banks and credit cards, and categorizing your transactions, it’s time to move to bank reconciliation.

What is bank reconciliation?

The process of matching the accounting records in QuickBooks Online with the monthly PDF statement coming from the bank.

A. WHAT YOU SHOULD DO:

  • Good record keeping – check and categorize on a daily or at least weekly basis
  • Be careful using bank rules – do not just accept the suggestions QBO makes, and do not auto-add unless you are 100% sure it’s correct
  • Use the bank statement monthly PDF balance – only this balance.

For a more detailed guide on how to have a smooth bank reconciliation every time, read more: Bank Reconciliation is Not That Scary! 5 Tips!

B. WHAT YOU SHOULD DO:

  • Do not omit personal transactions – if personal expenses are paid via a business account, record them as owner expenses…do not delete them.
  • Do not use the balance in the bank feeds to reconcile the accounts
  • Do not reconcile the banks or credit cards on inconsistent dates – only use the ending dates on the monthly statements
  • Avoid manually reconciling items in the bank register
  • Do not force reconciliation even for very small variance

C. TIPS TO SOLVE DISBALANCE

  • Double-check the beginning balance first
  • Double-check the ending date
  • Double-check the ending balance
  • Double-check the total debits and total credits
  • Double-check the number of transactions
  • Match them first in Excel

In this video series, I will share easy-to-follow, simple, and effective steps to setting up your books in QuickBooks Online!

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