Bank account and credit card reconciliation is the most important function through which you match and reconcile transactions that you entered in QuickBooks company file through bank accounts and credit cards. To ensure that your accounts are updated and accurate, it is important to reconcile bank accounts and credit cards in a regular basis, specifically every month end and year end.
Bank account and credit card reconciliation, all in all, helps you ensure that:
- All transactions in QuickBooks company file, such as bank fees, payments and deposits are accounted and recorded in QuickBooks, and
- All the transactions in QuickBooks bank register, such as bank ending balance matches and reconciles with the actual bank account balance.
While performing the task of bank account and credit card reconciliation, you can at time, encounter discrepancies as well, which are difficult to resolve and you may need assistant from a certified QuickBooks ProAdvisor.
Bank account and credit card reconciliation are actually mismatches that your recorded transactions in the account doesn’t matches with bank account or credit card statements. These discrepancies or differences, in a layman’s word are caused due to missed transactions.
To remove discrepancies, there are two possible way outs that you need to know that we discuss in this blog post:
Removing Bank Account and Credit Card Reconciliation Discrepancies
Before going through the steps to remove bank account and credit card reconciliation discrepancies, let’s understand the reasons that causes discrepancies:
- Reconciliation adjustments, such as journal entries
- Added, modified or deleted transactions
Steps to Remove Discrepancies Caused due to Reconciliation Adjustments
Earlier, if you have forced reconciliation by doing certain adjustments then you need to follow these steps to remove discrepancies:
- Click on Chart of Accounts from the Lists menu
- Now, double click on the option of Reconciliation Discrepancies accounts
- Select the correct filter from the date drop down menu
- In case, if you are unable to locate the registered transactions that are causing discrepancies then you need to undo earlier reconciliation till you get the correct opening balance
- Further, you can proceed only when you find the correct opening balance
- In case, if transactions that happened long time back needs to be corrected then you may need to undo the entire bank reconciliation process until you don’t find the correct opening balance
Steps to Remove Discrepancies Caused due to Added, Modified or Deleted transactions
Before you fix reconciliation discrepancies that are caused due to the modified, deleted or added transactions, you need to know that there are different reports that will help you locate exact discrepancies.
Missing Check Reports
Missing check reports account helps you identify and locate missing transactions and files.
- Select Banking and then click on Missing Checks from the Report menu
- Now, select the exact account and then click on OK
- Finally, review the transactions report that doesn’t reconcile with your bank account statement
Reconciliation Discrepancy Report
The reconciliation discrepancy reports highlights the transactions that are sorted and filtered as per the statement dates that are modified since the past bank account or credit card reconciliation.
- Select Banking and then click on Reconciliation Discrepancy from the Reports menu
- Now, select the appropriate account you want to verify and then click on OK
- Finally, review the the report files and know the discrepancies.
The Way Forward
Bank account and credit card reconciliation is the most important step that you need to do on every month end or year end to verify that your accounting records and files are accurately maintained. Any discrepancies in bank account reconciliation can cause havoc and lead to inaccurate data and reports that are bad for the financial health of your business. If there are discrepancies or differences in bank account or credit card then talk to our experts now.