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Bank Reconciliation in QBO
14 min
Basic+175 XP
Crash Courses · Basic

Bank Reconciliation in QBO

Step through the full QBO reconciliation workflow -- match, adjust, and close with a zero difference.
14 min read+175 XP on completionCert: QuickBooks Online
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Bank Reconciliation in QBO

Step-by-Step QBO Reconciliation

1. Accounting (left sidebar) > Reconcile
2. Select the account (checking, savings, credit card)
3. Enter:
   - Statement Ending Date
   - Ending Balance (from bank statement)
4. Verify Beginning Balance matches last statement
5. Start Reconciling

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Inside the Reconciliation Worksheet

Two columns:

  • Payments and Credits (left): QBO outflows to match to statement debits
  • Deposits and Other Credits (right): QBO inflows to match to statement credits

For each transaction on the bank statement: find it in QBO and check it off.

  • Checked = cleared
  • Unchecked = outstanding (check issued but not cashed, deposit not yet on statement)

The Difference at top right must reach $0.00 before you can click Finish Now.

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When the Difference Is Not Zero

CauseFix
Missing transactionEnter it in QBO, then come back
Wrong amountEdit the transaction in QBO
Duplicate transactionVoid the duplicate
Bank errorNote it, contact the bank, adjust next period
Prior period errorUse Undo Reconciliation or Mini Recon

Do NOT force a zero difference by creating a random journal entry. Fix the underlying cause.

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After Reconciliation

  1. Finish Now (only when Difference = $0)
  2. QBO auto-generates a Reconciliation Report
  3. Export as PDF: Accounting > Reconcile > History by Account > view report > print/PDF
  4. Save in client folder as: YYYY-MM-[Account]-Recon.pdf
  5. Lock the period (Account Settings > Advanced > Close the Books)

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Credit Card Reconciliation

Same workflow -- Accounting > Reconcile > select credit card account. The ending balance will be the statement balance (a liability, shown as positive on the statement). Match every charge and payment listed.

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