To begin with, reconcile multiple credit cards in QuickBooks is an important step when it comes to maintaining good bookkeeping standards. When credit cards are reconciled, users can ensure that particular credit card activity is in sync with the credit card statement of the QuickBooks account.
Read on to know why reconciliation is easy and how you should do it.
What is Reconciling of Credit Card in QuickBooks Online?
In order to reconcile multiple credit cards account, you need to add the ending statement balance. After that, you can match your particular transaction with the ones in your QuickBooks account.
When all the transactions show as CLEARED on the particular statement, then the QuickBooks cleared balance will be the same as your statement balance. Now your account gets reconciled.
Furthermore, while reconciling credit cards, there are few important points to be considered:
- Find out the transactions that are missing- In case the transactions on the statement are missing from your QuickBooks account, then you will need to add it prior to reconciling the account.
- Locate duplicate transactions- By examining the transactions for over a month which was not displayed on the bank statement, you can identify the transactions which should never be in your particular QuickBooks account.
- Identify incorrect amounts- In case the transaction is the same but the amount differs in the bank statement and QuickBooks, then such particular account will never be reconciled.
- Look for deceitful charges- If there are any changes on the particular bank statement which are not found in QuickBooks, you should check if the charges are genuine or not.
How to Reconcile Multiple Credit Cards in QuickBooks Online?
In bookkeeping, reconciling your credit cards is a vital step to make sure that the credit card performance in QuickBooks is similar to the activity of the credit card statement itself.
QuickBooks enables you to reconcile only two credit cards in a combined bank statement. The first thing you are required to do is set up your bank account. The first bank account you need to set up as a parent and the other bank account at sub-account.
Additionally, you can also do a force reconciliation. For this purpose, you will need to reconcile the particular account and then make a new transaction adjustment.
The following steps will show how both the ways:
Method 1: Building a Bank Account as a Parent while the other account as a particular Sub-account
Step 1: Select the Transaction or the Banking option displayed on the screen.
Step 2: Then choose the Connect option or select the Add Account button if you have not created an account due to any reason.
Step 3: Look for your bank.
Step 4: Select the Continue button.
Step 5: Then the next step is to add the particular username along with the password that is used for the bank website.
Step 6: Now select the type of account that you want to add.
Step 7: Select the date range in order to download the transactions. Few banks allow you to download the transactions of the last 90 days. Some banks allow you to download transaction of the last 24 months.
Step 8: Next, choose the Connect option.
Note: When you are connected to online banking, you must ensure how the downloaded transactions are shared with you by the bank. In case your particular transaction is downloaded to any one single account then it is possible to connect it with the parent account only. However, in case the transactions are downloaded to individual accounts, it is possible to connect the sub-accounts instead of the parent account.
If your opening balance is wrong, then it is highly recommended to delete the balance. You can delete the balance with the help of the instructions given below:
Step 1: Select the Accounting menu seen on the left side of the panel.
Step 2: Then select the Chart of Accounts option.
Step 3: Next, select the account.
Step 4: Select the View Register.
Step 5: Choose the Edit button and then erase the opening balance.
Step 6: Click the Save button.
Once all the steps are done, it is compulsory to reconcile the parent account. When you do so, all the particular transactions will increase in the sub-accounts.
Method 2: Reconcile the Account and then add the required adjustment for the difference
Step 1: Select the Gear icon.
Step 2: Choose the Reconcile button in the Tools section.
Step 3: Select the Account.
Step 4: Add the Ending Date and Balance.
Step 5: Select Start Reconciling and then click Save for later.
Step 6: Select Finish now and then choose the Add to adjustment and finish.
Here we have shared about reconcile multiple credit cards in QuickBooks Online. This article will also guide the process of reconciling credit card payments, multiple credit cards, and partial payments.
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Why users need to Reconcile their Credit Cards?
Users need to reconcile their credit cards, users ensure that the credit activity is in sync with the credit card statement.
How to identify the Transactions which must not be in QuickBooks account?
By determining the transactions for over a month that was not displayed in the bank statement. It is possible to identify the transactions that are missing QuickBooks account.