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 Credit Card Reconciliation in QuickBooks?
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.
Benefits of QuickBooks Credit Card Reconciliation
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.
Reconciliation of QuickBooks Desktop Account
You can use the Banking option in QuickBooks Desktop to reconcile credit card balances. This activates a menu that has a reconcile feature. It allows you to add accounts and specify credit cards for them. The accounting software will automatically fill in some details, like Statement Date. The remaining information can be added manually. In order to complete the account’s reconciliation, you can check the balance for the statements later.
- Firstly, you have to see the Banking option and then you can move to Reconcile that is given in it.
- Now you have Press Account.
- From Credits Cards choose an account.
- To auto-fill wait for the Statement Date.
- If you need then you can modify the statement of your bank.
- Now wait for a while and then let QuickBooks Desktop add your Beginning Balance.
- Then look for the Ending Balance. Here you have to enter the same value as the one on this bank statement.
- After that, go to Service Charge and Interest Earned. Here you have to mention the charge for the service and interest. You have to enter them only when you did not include them in any balance earlier.
- In all these fields check the information and then press Continue.
Your process for reconciliation will start for the credit card account. Certain fields you should mark and then you can tap on the button for Reconcile Now.
How to Reconcile a Credit Card in QuickBooks?
You must start the QuickBooks reconcile credit card procedure from the Accounting important menu. The Chart of Accounts is where the procedure starts in the Desktop version. Despite having different steps, both methods need information like the ending date, ending balance, etc. The correctness of the data enables you to successfully finish the reconciliation success.
Method 1: In QuickBooks
By adding a credit card account to QuickBooks, a user can aim for the reconciliation of their credit card. Using the Accounting option allows for this. You must first select the Reconcile option because you are adding it to the QuickBooks credit card reconciliation. Then you can add your account to a particular screen created for the procedure. The Start Reconciling feature can then be used.
- After you enter the QuickBooks software you have to select Accounting.
- Then you have to click the Reconcile option.
- Look at the screen for reconciliation.
- You have to choose the Account and then here for your card you have to add an account.
- Ensure that you can see a date that is auto-entered by QuickBooks in the Last Statement Ending Date.
- Then verify that your credit card’s beginning balance as it is visible on this screen.
- In Ending Balance use the card’s statement key.
- Now you have to Add Finance Charge. Only when you haven’t already done the previous steps in the form of another balance or value, then you should record it.
- Now tap on Start Reconciling.
- A reconciliation summary will appear on the screen. For transaction matching check the following in it:
- Statement Ending Balance
- Cleared Balance
- Ensure between the ending balance and cleared balance, the arising difference is zero.
- Press the radial symbol for every transaction. As Cleared Transaction, the entry will be recorded.
The method does not necessarily continue after the difference turns out to be zero. You could try making a fresh payment on the remaining debt on your credit card as an optional course of action.
Method 2: For QuickBooks Desktop
You can find a specific option called Reconcile Credit Card to reconcile the card. It can be found in the QBDT Chart of Accounts. This is the option you can choose from in order to learn how to reconcile credit cards in QuickBooks Desktop. To begin the process, it will ask you for information such as the ending balance, finance charges, and similar methods to start.
- In QuickBooks Desktop Run Chart of Accounts.
- Then choose which credit card account needs reconciliation and then press the option of Activities.
- Select Reconcile Credit Card from the menu you have.
- A box will appear for starting the process to reconcile. Add the date of the card’s statement to it.
- By using the statement you have to mention your card’s Ending Balance.
- Then add the charges of finance. With this information also enter the date of receiving.
- Then provide the account for which this charge has been applied.
- For going ahead click on Continue.
- For reconciling his/her credit card the user will find a window. Transactions that are uncleared need to be checked off.
- Mark all the transactions that match the ones on the card. By doing this, you will be marking them as cleared.
- Then you have to confirm that the difference between the matched entries is 0 and then tap on Reconcile.
- Select whether you need a report for the reconciling process afterward.
- After that, you will be taken to the Write Checks screen. As per the amount, for entering bills you may be directed to the window.
- Now you have to choose one company to whom the balance of this card is to be paid.
- Lastly, proceed with the printing of your check. Please save it in case of a bill.
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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Frequently Asked Questions (Faqs)
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.
How to fix Reconciliation Discrepancies in QuickBooks Desktop?
• First, you have to go to the Reports menu. Then go to Banking and select Reconciliation Discrepancy.
• Then choose the account you are reconciling and then click on OK.
• After that review the report and look for any discrepancies.
• Then talk with the person who made the change because there may be a reason they made the change.
How to Clean up Reconciliation in QuickBooks?
• First, you have to go to Banking and then click on Reconcile.
• Then select the bank account that you want to correct.
• In the Date of Statement field for off-cycle reconciliation enter a date.
• In the Ending Balance field type the balance of the last successful reconciliation.
• Lastly, click Continue.
• Check off each transaction you are fixing on the Reconcile window.
• Then confirm your difference field that shows $0.00.
• Now choose Reconcile Now.
Can Credit Card Accounts be Reconciled?
Making sure that the transactions done with credit cards and the transactions that appear in your General Ledger is known as credit card reconciliation. It is how we confirm that the transactions on both sides are correct, complete, and valid to how most account reconciliation processes work.