How to Reconcile Accounts Receivable in QuickBooks Online

To reconcile accounts receivable in QuickBooks Online, systematically match all outstanding invoices with received payments. This ensures accurate reporting, identifies overdue or missing payments, and helps maintain a healthy cash flow. Regular reconciliation prevents accounting errors and allows you to quickly spot discrepancies that could impact your business finances.

Gather Your Accounts Receivable Records

Before starting the reconciliation, collect all relevant information. This includes:

• Outstanding invoices
• Payment receipts and deposits
• Credit memos or adjustments
• Customer statements

Having all records ready ensures you can cross-check transactions accurately.

Access the Accounts Receivable Module

• Log in to QuickBooks Online
• Navigate to Sales → Customers
• Select the customer whose account you want to reconcile
• Review the open invoices and payments

This view gives you a snapshot of outstanding balances.

Compare Invoices to Received Payments

• Check each invoice listed in QuickBooks against your actual received payments
• Note discrepancies such as:
  
  • Partial payments
  • Overpayments
  • Missing payments
• Update the status of invoices as paid when confirmed

For example, if invoice #1021 was partially paid, record the amount received and note the remaining balance.

Apply Payments Correctly

• Open the Receive Payment option in QuickBooks Online
• Select the correct customer and invoice
• Enter the payment date, amount, and payment method
• Apply any available credits if applicable
• Save the transaction

This ensures the AR ledger reflects actual cash flow.

Adjust for Credit Memos or Write-Offs

If customers have credit memos or balances you need to write off:

• Apply credit memos to the appropriate invoices
• For uncollectible amounts, create a Bad Debt Expense entry and write off the invoice
• Document all adjustments for audit purposes

Reconcile and Verify Totals

• Run an Accounts Receivable Aging Report
• Compare your AR ledger totals to your general ledger
• Ensure the totals match and all payments are applied correctly
• Investigate any differences immediately

A reconciliation report ensures that your books accurately reflect the money owed to your business.

Document and Review

• Keep records of all reconciliations
• Note any discrepancies and how they were resolved
• Schedule regular AR reconciliations (monthly or quarterly)

Consistent documentation prevents future errors and helps with audits.

Bonus Tip: Integrate with DepositFix for Seamless Payment Tracking

Using DepositFix, you can automatically track and reconcile payments from your customers. DepositFix integrates with QuickBooks Online to record payments, apply them to invoices, and reduce manual entry. This streamlines your AR reconciliation process and ensures more accurate financial reporting.