How to Reconcile Payments in QBS

Reconciling payments is a critical accounting process to ensure your books are accurate. By comparing deposit records from your bank to payments entered in QuickBooks, you can identify any discrepancies or missing transactions.

In this guide, we’ll explain the importance of reconciling and walk through the step-by-step payment reconciliation process in QuickBooks Online and Desktop.

Overview of Reconciling Payments

Here’s an overview of what reconciling payments involves:

• Comparing transactions – You match up deposits in your bank account to related payments in QuickBooks to verify accuracy.
• Finding discrepancies – If there are any payments in one place but not the other, you research the cause of the mismatch.
• Making adjustments – You add, edit, or void any transactions needed to resolve discrepancies.
• Matching amounts – The final step is confirming your QuickBooks Payments account and bank account balances match.

Reconciling should be done regularly (usually monthly) to catch any errors and ensure your books are error-free.

Why Reconcile Payments?

Here are some key reasons to make reconciling payments a regular habit:

• Prevents fraud – Reconciling can detect unauthorized payments or transfers.
• Catches errors – It finds accidental duplicate payments, typos, or other entry mistakes.
• Maintains accuracy – You’ll have reliable financial reporting without errors skewing data.
• Saves time – It’s much easier to find and fix discrepancies right away before they compound.
• Provides reporting – Reconciliation reports give you the overall health of your payments account.
• Improves accounting – Clean books with no errant transactions allows for better accounting.

How to Reconcile Payments in QuickBooks Online

Reconciling payments in QuickBooks Online involves just a few simple steps:

1. Navigate to Banking and click on the account you want to reconcile.
2. Select the date range for transactions to include. Common options are month-to-date or a custom 30 day range.
3. Click Reconcile. This will pull in all payments and deposits from the date range.
4. Match transactions between the two sides. Click matches to confirm they clear.
5. If there are discrepancies, click Add or Match to make adjustments.
6. When finished, click Reconcile Now to complete reconciliation.
7. Review the reconciliation report for details on matched transactions.

That’s it! Your payments are now reconciled in QuickBooks Online.

How to Reconcile Payments in QBS Desktop

Reconciling payments in QuickBooks Desktop involves a similar process:

1. Go to Banking > Reconcile and choose your account.
2. Select the statement date and enter the ending balance shown on your bank statement.
3. Mark payments from your bank statement as they match with transactions on the right.
4. If you find discrepancies, you can add, edit or delete transactions to resolve them.
5. When finished matching, click Reconcile Now to complete the process.
6. Review the reconciliation report to see matched deposits and payments.

Your payments are now reconciled up until the statement ending date.

Tips for Smooth Payment Reconciliation

Follow these tips for an easier reconciliation process:

• Reconcile often instead of letting payments pile up. Monthly is recommended.
• Investigate any discrepancies right away while details are fresh.
• Double check dates and amounts when matching transactions.
• Attach bank statement PDFs or reports within QuickBooks for reference.
• For errors, edit transactions if possible instead of voiding or deleting.
• Contact your bank if you need copies of old statements or records.
• Consult QuickBooks support if you have trouble matching transactions.

Reconciling payments regularly is a vital accounting process to keep your books squeaky clean. Follow the steps outlined above to breeze through payment reconciliation in QuickBooks Online or Desktop.