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.
How do you get to the Reconciliation page? You go to Settings > Reconcile.
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.
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.
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.
Once you’ve saved your reconciliation you’ll see this 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.
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.
If you fill in your Ending balance and Ending date and hit on Start reconciling, you will be brought to this bank reconciliation page.
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.