How to Reconcile a Bank Account in QuickBooks 2010 - dummies

How to Reconcile a Bank Account in QuickBooks 2010

You can balance (or reconcile) a bank account with surprising speed in QuickBooks 2010. QuickBooks provides you with a handy dialog box that allows you to match your account records with your bank’s records.

1Choose Banking→Reconcile.

QuickBooks displays the Begin Reconciliation dialog box.

2Select an account from the Account drop-down list.

Specify the account that you want to reconcile

3In the Statement Date text box, identify the ending date of the bank statement that you’re using in your reconciliation.

You enter the date in the mm/dd/yyyy date format, or you click the calendar button and use it to select the correct date.

4Enter a value in the Ending Balance text box.

Use the ending balance that appears on your bank account statement.

5In the Service Charge and Interest Earned text boxes, enter information describing these transactions, if applicable.

Identify the amount of any service charge or of any interest, the date of any such transaction, and the account that you use to track those charges or interest.

6Review the statement information.

Take a moment to review the information and confirm that it’s correct. You’ll have a whale of a time reconciling an account if the amount that you’re trying to reconcile to is incorrect.

7Click the Continue button.

The Reconcile window appears.

8To identify checks and payments transactions that have cleared your bank account, in the Checks and Payments list box, click the transactions that have cleared.

When you click a transaction, QuickBooks marks the transaction with a check mark. The check mark indicates that a transaction has cleared. You can mark all the transactions on a list as cleared by clicking the Mark All button. You can unmark all the transactions on a list, identifying them as uncleared, by clicking the Unmark All button.

9In the Deposits and Other Credits list box, click deposit transactions to identify them as cleared.

You identify a cleared deposit transaction in the same way that you identify a cleared check or payment transaction. You can click a transaction, which causes QuickBooks to mark the transaction as cleared. You can also use the Mark All and Unmark All buttons to mark or unmark all the deposits and other credit transactions at one time.

10If you realize that, as part of the reconciliation, you’ve incorrectly entered the service charge, interest earned, ending balance, or any other information, click the Modify button.

QuickBooks redisplays the Begin Reconciliation dialog box.

11Make the necessary changes and click Continue.

You return to the Reconcile window.

12Verify that the cleared balance equals the ending balance.

If you have provided correct information in the Begin Reconciliation dialog box and correctly identified all the transactions that have cleared your account, the ending balance should equal the cleared balance.

13When the ending balance equals the cleared balance, click the Reconcile Now button.

QuickBooks permanently records your cleared transactions as cleared and redisplays the Register window. If you can’t reconcile an account, you can click the Leave button. QuickBooks then saves your half-completed reconciliation so that you can come back later and finish it.