You’ve probably heard the term reconcile, but maybe you have no idea what it means.
To reconcile an account is basically double checking that everything in your accounting software is exactly what is on your bank statements. You are making sure that you’ve included all transactions so that you’re not missing any income or expenses. You can see why that would be important right?
When new clients come to us, unreconciled accounts are one of the most common things we see + fix. Don’t worry, we’re here to help!
Below are the steps for how to reconcile an account👇🏻
In Quickbooks
After categorizing all transactions for the month, navigate to Transactions>Reconcile.
Download your bank statement for your bank.
In QB, put in the statement ending date and ending balance.
Go through your statement and check off the transactions in QB. When you’re done, click reconcile and go on your way!
In Xero
Download your statement from your bank.
Navigate in Xero to Accounting> Bank Accounts>Account Transactions.
Scroll down to the date that matches the statement ending date.
Make sure your balance matches.
Troubleshooting
If the balances don’t match, you either are missing transactions or have duplicate transactions. Review your bank statement to find the missing or duplicate transactions.
For any duplicate transactions, remove them For any missing transactions, you can add those manually.
If you never want to think about reconciling, leave it to us! We nerd out on a matching balance and perfect reconciliation – it’s kinda our thing. Let’s chat about how we can help you.
The content in this blog post is provided for general informational purposes only and should not be considered professional tax or legal advice. The author is not a Certified Public Accountant, and no assurances can be made regarding the outcomes or consequences of tax returns, IRS actions, or any financial decisions based on this information. Readers are strongly advised to consult with a qualified tax professional or legal advisor for personalized guidance specific to their individual circumstances. The author expressly disclaims any liability for decisions made based on the information presented in this blog post.