Things To Do When QuickBooks Bank Reconciliation Don’t Match Balance Sheet
QuickBooks became an undisputed king of Financial Managers in recent times. There are many reasons behind it. It has a friendly user interface that makes working easier. A wide range of features that assist in making the bookkeeping simpler, and smooth functioning with next to nil crashes and errors. There is also the factor of sound customer grievance redressal in the form of QuickBooks support. All these make QuickBooks own the crown, however, there is one feature that stands out. A feature that sees great practical use. That is the QuickBooks Bank Reconciliation.
In this blog, QuickBak will discuss the mentioned feature. We will also discuss ways to resolve the QuickBooks bank reconciliation problems. Do not panic if there is an issue. Since this is a complex function, there can be a few troubles. Let us proceed to the main details.
- 1 What is QuickBooks Bank Reconciliation?
- 2 Important Notes on QuickBooks Bank Reconciliation
- 3 Why is QuickBooks Bank Reconciliation Report with a Bank Account so significant?
- 4 Benefits of the QuickBooks Bank Reconciliation Report
- 5 Steps to Generate Your Bank Reconciliation Report:
- 6 Must-Know Facts About QuickBooks Reconciliation with Bank Account
- 7 Plan of Action if QuickBooks bank reconciliation does not match balance sheet:
- 8 Avoiding the QuickBooks Bank Reconciliation Problems:
- 9 Following are the Prerequisites for Avoiding QuickBooks Bank Reconciliation Problems:
- 10 Frequency of the QuickBooks Bank Reconciliation:
- 11 In Case you Face Bank Reconciliation Problems on QuickBooks :
What is QuickBooks Bank Reconciliation?
The Bank Reconciliation is an arrangement of financial transactions present on the bank statements with the records maintained by your QuickBooks. Reconciling bank accounts with QuickBooks is an essential part of business, as it efficiently manages vital data. Similarly, the cash flow analysis of the business helps the customers understand the importance of QuickBooks Bank Reconciliation.
The need of the bank reconciliation report arises for various reasons. Besides , it is important to reconcile business bank accounts on a monthly basis. This helps to avoid all probabilities of inaccuracy. It further ensures the following points:
- The user can analyze if there is any discrepancy between the records & the banks, also;
- The user gets notifications on time which does away with the chances of fraudulent transactions.
So experts recommend users to update their bank/credit card account reports in QuickBooks to ensure that the results are correct.
Important Notes on QuickBooks Bank Reconciliation
- Users shouldn’t take the risk of bank reconciliation in QuickBooks in case of a mismatch. That is, if the reconciliation window doesn’t match the opening balance in the bank or debit card statement.
- Users should also set up the bank or credit card account in QuickBooks with the correct opening balance.
- Users should not edit any type of current transaction. Because this creates unnecessary problems with the opening balance.
- Users should receive a duplicate of the bank transfer or credit card statement.
- Users should frequently reconcile the account as received.
- Users should enter all uncleared transactions for the statement period.
Why is QuickBooks Bank Reconciliation Report with a Bank Account so significant?
Bank Reconciliation is a technique that uses two sets of records to ensure that the figures are true to fact. This functionality of QuickBooks concludes whether the funds move an account event, and the total amount spent. However, the users must secure the two values equalized at the end of the recording period.
With the help of this feature, you get hints of observing the accounting records, accounts receivable, and accounts payable. After this, match them up to the equivalent transaction recorded in the bank statement.
After every financial month & quarter, it is necessary to reconcile an account. Every transaction leads to the correct ending account balance.
Benefits of the QuickBooks Bank Reconciliation Report
- The financial transactions and bank statements get recorded in QuickBooks software.
- All the reconciled transactions get marked as cleared in QuickBooks.
- The user becomes competent to run the bank reconciliation reports.
- The balance sheet, and profit & loss statements get advanced.
- Financial transactions get marked as emptied in QuickBooks.
- All transactions get listed in QuickBooks.
Steps to Generate Your Bank Reconciliation Report:
- The user must arrange the bank or credit card account in QuickBooks with the accurate opening balance.
- Create a backup of the QuickBooks company file for emergency purposes, also keep a pencil nearby to note down the records.
- Be in possession of a copy of your bank or credit card statement.
- Keep all uncleared transactions for the statement period, in a file.
Must-Know Facts About QuickBooks Reconciliation with Bank Account
So that identifying the problems regarding Bank Accounts does not become a messy task, users must review the bank accounts daily. It is very important for businesses, accounts, & individuals to inspect wrong activities before they become a sore.
Plan of Action if QuickBooks bank reconciliation does not match balance sheet:
To identify if there is any sort of hoax check if:
- Creating a duplicate or alteration by the bank, causing more money to leave the account.
- Troubles of the account are being checked without the required permission.
- Presence of unapproved transfers out of the account linked with the QuickBooks app.
- There have been withdrawals without the approval of the bank account handler.
For Employee Payment:
- With its time-tracking and integrated payroll features, the employers can keep. a track on the active hours of their employees.
- QuickBooks also helps the users to pay the staff members by direct deposit.
- QuickBooks helps in issuing W2s at tax time.
- QuickBooks also helps file taxes online likewise.
Avoiding the QuickBooks Bank Reconciliation Problems:
Reconciling the bank account helps the users understand issues that might require attention. These issues include:
- The need to re-examine how the cash flow and accounts receivable get managed or handled.
- The wish to modify the recorded activities of someone.
- If you want to see which accounting processes form part of a particular transaction.
Following are the Prerequisites for Avoiding QuickBooks Bank Reconciliation Problems:
- Know the availability of the accounts that you have entered in your QuickBooks account.
- Stop bank charges levied on you. This happens due to the absence of sufficient funds.
- Don’t bounce analysis or fail computerized payments to coworkers & suppliers.
- Know about the bounced or unsuccessful customer payments from your end.
- Keep a track of the outstanding cheques which get cleared at any point in time.
- Make sure that the accounting system is working appropriately.
- Help yourself by checking whether the bank server is facing some issue or not.
For Receiving Payments
- QuickBooks helps users accept payments easily.
- Customers get an option to pay through credit card, debit card, PayPal, or bank transfer.
- QuickBooks transfers the money directly to the bank account.
- QuickBooks refine repayment.
- Users can swipe or dip the card from the phone or tablet if there is even a mobile card reader.
Frequency of the QuickBooks Bank Reconciliation:
You must reconcile bank accounts once a month, at least. This becomes a must for those who deal with high-volume businesses or positions and where issues are common to appear.
For those involved in the sales and trade business, we recommend a higher frequency.
It makes your work simpler and also helps the QuickBooks Bank Reconciliation feature perform better.
The user can ask the bank for ideas for Positive Pay, which various banks propose, or to stop the bank from accepting payments.
In Case you Face Bank Reconciliation Problems on QuickBooks :
Sometimes the users are not able to reconcile their bank accounts. If the difference between the two statements is meager, there is no question of anxiety. Most reconciliation modules label this as an error. The users are capable of resolving the missing transaction while reconciling the next month’s data.
To conclude, the QuickBooks bank reconciliation report is immensely useful to maintain your books. You need to update and generate this report frequently. This helps you avoid issues with the bank reconciliation feature. This report also includes payment data, so this makes it all the more complex. Still, if you find any trouble while generating the QuickBooks bank reconciliation report, refer to this blog. We are sure it’ll resolve a majority of your issues. For any extra help, please feel free to connect with QuickBooks Support. An expert provides further help.