In QuickBooks accounting software it is very easy and convenient to reconcile accounts receivables in QuickBooks accounting software. To do that, they can either download the transactions and bank statements in Web-Connect format or link the bank account with QuickBooks accounting software. The would allow the users to download the bank statement for a particular period directly into QuickBooks accounting software.
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Also, combination gives more flexibility to the users by letting them import all the transactions straight into their bank accounts. In addition to it, a Chart of Accounts in QuickBooks accounting software can be used for hassle free reconciliation of the accounts. It merges all the accounts available in the company file. So, you can search for a different asset, liability, income, and expense accounts without any issue.
Reconcile Accounts in QuickBooks Accounting Software
To reconcile the accounts, organizations generally reconcile all the data present in the expense and income account & in the assets and liabilities account with the data in their bank statement. Once it’s done there will be the chances that differences can be zero out. Also, accounting reconciliation is compulsory task for all the organization whether big or small. So, it is good to perform the reconciliation on weekly or monthly basis.
How can We define the Account Receivable Reconciliation?
The Account Receivable Reconciliation is the process to match the detailed amounts of the customer billings which are not yet paid to the total of accounts receivable mentioned in the general ledger. This process is generally followed in the end of the financial year to get rid of any inconsistencies available in the statements. For all the organizations reconciliation of the accounts becomes an essential task to keep the accounts updated and accurate. This also helps to ignore any errors and fines because of the incorrect accounts. Here in this article, we will explain how to reconcile accounts receivable in QuickBooks Online and QuickBooks Desktop.
What is the Importance of the Reconciliation in QuickBooks Accounting Software?
Doing the reconciliation of the accounts in QuickBooks accounting software required to happen at least once in a month when you receive the statements. So, it is important to make sure that you are not missing anything which could cause the accounts to get out of balance. This process will help you to get the accurate data without any discrepancies. It is essential to track the money flow like how much money you are currently having and how much money is coming in and how much you are required to pay. As you update the bank statements and other transactions, the balance sheet and profit and loss statements will be automatically updated by QuickBooks accounting software. QuickBooks reconciliation can also help the users to identify any differences and to know the potential fraud entries which you did not approve so that you can take the necessary action. You are also required to have this information when it is tax time. It is convenient to perform the reconciliation in QuickBooks accounting software on monthly basis than to try to recreate the financial information when the taxes are due.
How to Perform the Reconciliation in Account Receivable in QuickBooks Accounting Software?
As we have discussed earlier that doing the reconciliation of the accounts not only helps users to get the accuracy in the transactions but also helps to know about any fraudulent entry in the books of accounts. While performing the reconciliation process, users can clearly see the flow of money. Any difference can be easily identified and rectified prior it damage the goodwill and credibility of the organization.
How to Reconcile Accounts Receivable in QuickBooks Desktop?
To maintain the accuracy of the accounts it is mandate to perform the reconciliation of the account in QuickBooks desktop. Reconciliation also helps the user to identify any inappropriate entry in the books of accounts. While reconcile a particular account, user is able to see the money flow in the account. If there is any difference, it should be rectified as soon as possible before the credibility of the company goes down.
To reconcile the receivable account in QuickBooks Desktop, there are two option one is to link the bank account with accounting software or download the bank statement & transactions in Web Connect format. Once it’s done, the bank statement can be downloaded for a particular time period. To know the procedure of how to reconcile accounts receivable in QuickBooks Desktop, one needs to follow the below-mentioned steps:
- In the first step, you are required to launch the “QuickBooks Desktop” on the system and after that go to the “Gear” icon to open QuickBooks settings.
- Post that, move to the “Tools” tabs and click on the “Reconcile” option and now you can proceed to search for the account which needs to be reconciled. Once found, hit on it to choose and hit the reconcile now option.
- Once you are done with the above given steps, now enter the start and end date for the statement.
- And post entering the beginning and ending balances, now click “OK” option.
These are few steps which you are required to adhere to reconcile the accounts in QuickBooks Desktop. Kindly ensure to select he accurate account from the list to perform the reconciliation and enter the beginning and ending balance accurately.
How to Reconcile Accounts Receivable in QuickBooks Online?
For performing the accounts receivable, user needs to go through the QuickBooks Online settings. You are required to select the bank account after opening the QuickBooks setting and mention the opening as well as closing balance. Once you have entered all the required information, the bank statement and reconciliation transaction should reconcile and the difference should appear as zero.
Here are few steps given-below to know the procedure of doing the reconciliation of the accounts receivable in QuickBooks Online:
- In the first step, you are required to hit on the “Gear” icon situated in the top right. This will open the settings in QuickBooks and now select the “Reconcile” option.
- After that, you are required to make the selection for the “Bank Account“.
- Post that, enter the opening balance and closing balance including the end date of the statement.
- Once you are done with the above steps now you need to do the comparison between the totals of statements with the total of QuickBooks Online and post that the balance should appear as zero.
- In the end, you need to click on the “Zero” difference and hit the “Finish” option.
Once you are done with these steps, the accounts you have selected from the list will be marked as reconciled in QuickBooks Online. Once it’s done the accounts are accurate and updated with the required details.
How to do the Reconciliation of the Bank Account in QuickBooks Accounting Software?
You are required to verify if all the payments are recorded to do the reconciliation of the Bank Account in QuickBooks. Now, you can navigate to the QuickBooks’s home Page to get the reconcile option and post that choose one bank account. Then get the bank statement to know the date written on this. You are required to enter the date in the Calendar of QuickBooks accounting software. Post that, you can begin mentioning the other required information. After that, you can make the comparison between the transactions in the bank with the ones listed in QuickBooks accounting software to do the reconciliation of the account.
- In the first step, you are required to update “QuickBooks” to its recent version if it is not updated.
- After that, record the payments which are needed and post updation of the transactions, get the bank statement.
- Now, choose the reconcile option from the “Home Page” and select the bank account.
- Verify the statement date on the actual bank statement.
- Post that, click on the calendar dropdown as shown in the below screenshot and enter the date of the statement in this calendar.
- You need to be sure that “Beginning Balance” on the bank statement and in the accounting software is the matching. If the balances are different then choose “What if My Beginning Balance doesn’t Match Any Statement Link?“.
- Now, enter the “Ending Balance” given on the bank statement.
- If there is any service charges are available on the statement so include them in “Service Charge” as shown in the below screenshot. Also, mention the account with respect to the service charges.
- If there is any interest earned then enter the amount of “Interest Earned” and change the date if required. Also, mention the account with respect to the interest earned.
- Click on the “Continue” option.
- In the next screen, few transactions will be found in QuickBooks. Reconcile them with the entries made in the account.
- Make sure the difference should be zero and click on the reconcile now option and after that choose OK.
- You may select the print option on the report of reconciliation of the bank account.
- Before finalizing the print you may wish to choose the “Display” to see the preview of the report.
What can be Done Post Reconciliation?
Once the accounts are reconciled, you need to match all the entries available on the accounts with the account mentioned on the bank statement. This process is a manual process to match the numbers.
Here are few steps given-below which can help you to get the job done:
- You can open the reconciliation statement once its ready. After that, reconcile the entries of the statement with the one available in the bank statement. Kindly ensure that the entries and the bank statements are matched to successful completion of the reconciliation process.
- QuickBooks accounting software reflects a checkbox for the entries available in the reconciliation statement. To match the statements manually, user can place the checkmark for the entries which is visible in the bank statement.
- Once the reconciliation is done in your accounts kindly ensure to verify the difference between bank statements and reconciliation statements and the difference should be shown as zero.
- Once its verified just click on the finish option and you are done.
All you are required to do is to enter the accurate information and match the statement and once you adhere the above-mentioned steps carefully, you can successfully do the reconciliation of the accounts in QuickBooks accounting software. Once it shows zero that means the reconciliation process is complete for the selected account.
The reconciliation process is quite similar between the QuickBooks desktop and QuickBooks online version. However, QuickBooks Desktop provides you more flexibility. Furthermore, you are able to search for the reconciliation statement using smart functions and tags. QuickBooks gives a detailed summary and detailed reconciliation statement reports. We have included all the information which will help you to understand the process of reconciliation accounts receivables in QuickBooks. However, if you will come across with any issue or have any further question related to this you can always reach out to our Dancing Numbers team of experts without any hesitation.
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