QuickBooks

A New Way to Reconcile in QuickBooks Online

Written by Greg Lam

There’s a new way to reconcile in QuickBooks Online and you can try it out in QuickBooks Labs.

Greg Lam will be presenting the sessions, Cloud Accounting Face Off and Setting Up a Paperless Accounting Flow, at Accountex 2016.

However, first it might be a good idea to go over what a reconciliation is, to make sure we’re all on the same page.

Traditionally, a reconciliation is a matter of checking that the transactions in your bank statement match the records found in your accounting. Since categorizing and matching transactions using bank feed data is the new norm with online accounting, reconciliation has become part of that process. Nonetheless, QuickBooks Online still has an official Reconciliation page, even if it isn’t obvious from looking at the Banking page.

Reconcile in QuickBooks Online

There’s no link to do a bank reconciliation from the Banking page

How do you get to the Reconciliation page? You go to Settings > Reconcile.

Reconcile in QuickBooks Online

Existing Reconciliation Page and Report

So that you understand how the new reconciliation in QuickBooks Labs works, let me first show you how it currently exists. In the existing Reconciliation page, you get a view of your Reconciliation History & Reports as well as a chance to Reconcile Now.

Existing reconciliation page

Existing reconciliation page

You can click on any report to view it, and if you click on Reconcile Now, you’ll be asked to fill in a statement ending balance and date, and then brought to this screen.

Existing reconciliation page

Existing reconciliation of a bank account

You’ll notice how the checks and payments are on the left while the deposits and other credits are on the right. Essentially what you’re doing is checking off the transactions that match those found in your bank statement. The end goal is that your statement ending balance in both QuickBooks Online and your bank statement match.

Transactions that were cleared using the For Review tab in the Banking page are marked with a green icon. Ideally, if you cleared all the transactions in the For Review tab, reconciliation would be a very simple rubber stamp process.

Once you’re done working with the page, you can click on Finish Now to save it, Finish Later to save it as a draft, or Cancel to undo whatever you did. Once you click on Finish Now, you won’t be able to edit it later, but you will be able to undo all your work if you want to start from scratch. If you click Finish Now when there’s still a difference, you’ll be forced to either add an adjustment or cancel.

Existing adjustment interface

Existing adjustment interface

Once you’ve saved your reconciliation you’ll see this report.

Existing Reconciliation Report

Existing Reconciliation Report

The report will show you your cleared transactions in addition to you uncleared ones (perhaps some undeposited checks or pending payments, for example).

So, in a nutshell, that’s what the existing reconciliation process looks like in QuickBooks Online.

‘Experience the Joy of Reconciliation’

Yes, that’s the real name of the new reconciliation feature as found in QuickBooks Labs. To get to it, go to Settings > QuickBooks Labs > Experience the joy of reconciliation really to try it out.

Experience the Joy of Reconciliation

The reconciliation unquestionably has a more modern look to it. You’ll notice that there are now two tabs, one for Reconcile Account and the other for History and Reports.

Reconcile an account

If you fill in your Ending balance and Ending date and hit on Start reconciling, you will be brought to this bank reconciliation page.

Transactions are all within a single table now

Transactions are all within a single table now

As you can see, the transactions are all found with a single table. If you want to filter what you see, there is a filter icon you can use to change which transactions are shown.

Click the filter icon to hide/show transactions

Click the filter icon to hide/show transactions


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About the author

Greg Lam

Greg Lam is a passionate small business guy who loves technology and automation. He holds a BBA from Simon Fraser University, Canada. He's a Certified QuickBooks ProAdvisor, Certified Xero Partner, and Kashoo MVP. His business interests are focused on online accounting and how it can be used to streamline and automate a company’s accounting processes. He currently lives in Tokyo, Japan.

Greg operates the Small Biz Doer website, an "Entrepreneur's Guide to Small Biz Bookkeeping." He is the author of Online Accounting Software: Finding the Right Match, published by The Sleeter Group.

Connect with Greg on Twitter, Google Plus, YouTube, LinkedIn, or Facebook.

7 Comments

  • Thanks Greg, as always, for your fantastic review. I actually think that the fact that you can’t use SHIFT to select a whole group of transactions, and instead have to check them all off manually, is a really big drawback for those of us working with a large number of transactions. I do like that they warn you about the beginning balance being off — even though I always tell my clients to check first, they sometimes forget.

  • I am getting queries regarding how to do reconciliation as people upgraded their QuickBooks software, and most of the times I get confused as I just started giving the support services for QuickBooks.

  • Is it just me, or did they take away this new reconciliation view? I’m back to the old one and I really want the cleaner green one back. 🙁

  • Yeah, it’s great til you realize there is an error after reconciliation and you go to “undo previous reconciliation” (as can be done easily in the desktop version) and realize that in their infinite wisdom, Intuit decided that that was not an important feature to include in the online version. And you have to spend hours instead of seconds unreconciling each transaction individually!! Why would they leave out such a useful tool? Really lame.

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