TIP: Reconciling your bank accounts is perhaps the most important task in QuickBooks® as it assures that all of the data you have entered (and therefore all of your reports) are accurate and complete.
A few helpful hints for reconciling accounts:
1. Make sure that you enter transactions the way you expect them to appear on the bank statement (i.e group checks for deposit using so that that each of your QuickBooks® deposits matches your bank statement)
2. Date all items on the date the actual transaction took place (not the date that you are entering the item). The check date will obviously not match the date it clears the bank.
3. Avoid deleting, changing or voiding any transaction that has already cleared the bank. If you are not sure if something has been cleared, you can locate the item on your register and look for a checkmark in the cleared column.
4. Make sure that all of your check numbers are correct and have not gotten out of synch.
5. Be sure that your beginning balance (per QuickBooks®) has not changed. It should match the reconciled balance per your last reconciliation. If it has changed, you can reprint your last report and compare it to the one you printed when you reconciled, looking for differences. Always print the detailed report when you are finished reconciling and file it with your bank statement.
6. Compare your total deposits per QuickBooks® to total deposits per the bank statement and see if you can narrow down the area in which you could have an error. Same for total checks (debits per your bank statement). Your totals per QuickBooks® appear in the reconcile bank window as you are reconciling.
7. Look for any bank charges that you might not have entered. Open a new window and write a check for any you have missed.
8. Do an advanced QuickBooks® search on the amount you are off. Scan your bank statement for any single item of the same amount.
9. Look at the MICR amount that the bank codes onto the bottom right corner of your cleared checks. Compare it to the actual amount of the check--sometimes there are discrepancies.
10. Keep in mind that it is not unusual to have to look for and locate discrepancies as you are reconciling. You will get quicker at locating them as time goes by.
11. If you absolutely cannot find the error, and the amount is small, write a check or make a deposit for the difference and post it to Miscellaneous.
12. Never answer yes to the QuickBooks® out of balance message. This will result in QuickBooks® making an entry to Opening Balance Equity which will have to be corrected later. See #11.
13. If you've never reconciled the account or if you missed one or more months, you'll need to start the reconcile process with the oldest statement first and work through them until you are current.
14. A similar procedure can be applied to reconcile your credit card accounts.
15. Be sure to reconcile your bank and credit card accounts on a monthly basis.
