Reconciling Accounts

 ✅ How to Reconcile in QuickBooks Online (QBO)

  • Go to the Gear Icon → “Reconcile”

    • Or click Accounting → Reconcile from the left menu.

  • Choose the account you want to reconcile (e.g., checking, credit card).

  • Enter your statement info:

    • Ending balance from your bank statement.

    • Ending date of the statement period.

  • Match transactions:

    • Check off transactions in QuickBooks that appear on your bank statement.

    • The difference should be $0 when everything is matched correctly.

  • If there’s a mismatch:

    • Look for missing, duplicate, or incorrectly dated transactions.

    • You can use filters to sort by date, type, or cleared status.

  • Once the difference is $0, click “Finish Now.”

  • Save or print your Reconciliation Report.

✅ How to Reconcile in QuickBooks Desktop

  • Go to Banking → Reconcile from the top menu.

  • Select the account (e.g., checking, credit card).

  • Enter statement information:

    • Ending balance

    • Ending date

  • On the Reconcile window:

    • Check off all transactions that appear on your bank statement.

    • The Cleared Balance should match your Ending Balance.

  • If there’s a discrepancy:

    • Use the “Locate Discrepancies” tool.

    • Check for manually entered transactions, incorrect dates, or deletions.

  • When the difference is $0, click “Reconcile Now.”

  • Choose how you want to print or save your Reconciliation Report.

✅ How to Reconcile in Xero

  • Go to the Dashboard

    • Click on your bank account tile from the main dashboard.

  • Click “Reconcile [#] Items”

    • This opens the bank reconciliation screen, where you match Xero transactions to your bank feed.

  • Review each transaction:

    • On the left: what your bank shows.

    • On the right: what’s in Xero.

    • Xero will often suggest matches.

  • For matched items, click “OK” to confirm reconciliation.

  • For unmatched items, you can:

    • Click “Find & Match” to manually search transactions.

    • Use “Create” to record a new transaction (like a spend or receive money).

    • Use “Discuss” to leave a note if clarification is needed (especially useful in teams).

  • Continue until all transactions are either matched or explained.

  • To view past reconciliations:

    • Go to Accounting → Bank Accounts → [Account Name] → Account Transactions.

    • You can view what's reconciled, what's not, and fix errors.