How to Reconcile in QuickBooks Online

To reconcile in QuickBooks Online, compare your bank or credit card statements with your QuickBooks records to ensure they match. This process helps you detect missing entries, duplicate transactions, or bank errors early.

Prepare Your Bank or Credit Card Statement

Before starting the reconciliation, gather your latest bank or credit card statement. You’ll need:

• The statement ending date (e.g., March 31, 2025)
• The beginning and ending balances
• All transactions made during that period

Make sure your QuickBooks register includes all deposits, expenses, checks, and transfers from that period. If something is missing, record it first, as reconciling without complete data can lead to inaccurate results.

Example: If your bank statement shows a deposit of $2,000 from a client, make sure it’s entered under Sales → Deposits in QuickBooks before reconciling.

Open the Reconciliation Tool in QuickBooks Online

Go to: Settings ⚙ → Reconcile → Choose Account.

Select the bank or credit card account you’re reconciling. Then, enter:

• The ending balance from your bank statement
• The ending date from the statement

Click Start reconciling to open the reconciliation window.

Match Transactions Between QuickBooks and Your Statement

In the reconciliation screen, you’ll see two lists, one from your QuickBooks register and one representing your bank transactions. Your goal is to match them so the difference at the top right equals $0.00.

Match transactions by:

• Date: Make sure the date in QuickBooks matches the statement date.
• Amount: Confirm the amounts are identical.
• Payee: Verify the vendor or customer name.

When you find a match, check the box next to the transaction. QuickBooks will mark it as cleared.

Tip: If a transaction appears on your bank statement but not in QuickBooks, add it manually using the + New → Expense or Deposit option.

Investigate Discrepancies or Missing Transactions

If the difference doesn’t reach zero, check for:

• Duplicate entries or missing transactions
• Bank fees or interest not yet recorded in QuickBooks
• Timing differences between your records and the bank

To record bank charges:

1. Click Edit Info in the reconciliation screen.
2. Add service charges and interest earned from your statement.
3. Assign correct expense or income accounts.

Example:

Complete the Reconciliation

Once the difference is $0.00, click Finish now. QuickBooks will create a reconciliation report, which you can view under:
Reports → Reconciliation Reports.

Keep this report for your accounting records, as it serves as proof that your books match your bank data for that period.

Review and Fix Past Reconciliation Issues (Optional)

If you discover errors in a past reconciliation, go to:
Accounting → Reconcile → History by Account → View Report.

You can undo or adjust a reconciliation with your accountant’s help. QuickBooks warns against deleting transactions that were previously reconciled, as it may unbalance future reports.

Bonus Tip: Simplify Reconciliation with DepositFix Integration

If you’re using DepositFix for payments, it seamlessly integrates with QuickBooks Online to automatically record customer payments and match them with invoices. This reduces manual data entry and ensures that all ACH or credit card transactions are synced properly, making reconciliation faster, easier, and error-free.