Reconciliation (Bank Reconciliation)
Bank reconciliation is the process of comparing your internal accounting records against your bank statement to ensure they match, identifying and resolving any discrepancies.
What Is Bank Reconciliation?
Reconciliation means matching every transaction in your books to the corresponding transaction on your bank statement. It catches errors, fraud, missing transactions, and timing differences.
Why Reconcile?
1. Catch errors: Data entry mistakes, duplicate entries, wrong amounts
2. Detect fraud: Unauthorized transactions show up during reconciliation
3. Find missing items: Bank fees, interest, or auto-debits you forgot to record
4. Accurate financial statements: Your books reflect reality
5. Tax preparation: Clean books = faster, cheaper tax filing
How to Reconcile in QuickBooks
1. Go to Settings → Reconcile
2. Select the account
3. Enter the statement ending date and balance
4. Match each transaction to the bank statement
5. Resolve discrepancies
6. Finish when the difference is $0.00
How Often to Reconcile
Common Reconciliation Issues
Related Terms
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