The basic reconciliation process in QuickBooks Online

To reconcile a bank statement in QuickBooks Online, you match the transactions your bank shows against the transactions you recorded in your books. Open QuickBooks Online, go to the Accounting menu, select Reconcile, then choose the account you want to reconcile. Enter the statement date and the ending balance from your bank statement. QuickBooks will then show you every transaction in that account and let you mark off the ones that appear on your statement.

The goal is to get your QuickBooks balance to match your bank balance exactly. When they match, the reconciliation is complete. If they don't match, QuickBooks shows you the difference so you can hunt down what went wrong — usually a transaction you recorded but the bank hasn't processed yet, or a transaction the bank processed that you forgot to record.

The whole process typically takes 15 to 30 minutes for a single month if your records are reasonably clean. If you haven't reconciled in months or years, expect to spend longer because you'll have more transactions to sort through.

Key Takeaways

  • Start a reconciliation by going to Accounting > Reconcile in QuickBooks Online and selecting the account and statement date.
  • Mark off each transaction that appears on your bank statement by clicking the checkbox next to it in QuickBooks.
  • When your QuickBooks balance matches your bank statement balance, click Finish Now to complete the reconciliation.
  • If the balances don't match, QuickBooks shows the difference amount, which helps you find missing or incorrectly recorded transactions.
  • Uncleared transactions — ones you recorded but the bank hasn't processed — will show as pending and should not be marked off during reconciliation.

What information you need before you start

Gather your bank statement before you open QuickBooks. You need the statement date (the last day covered by the statement), the ending balance shown on that statement, and ideally a list of all transactions the bank processed during that period. Most online banking portals let you download statements as PDF or CSV files.

You also need to know which account in QuickBooks corresponds to the bank account on your statement. If you have multiple bank accounts, make sure you're reconciling the right one. QuickBooks will list all your bank and credit card accounts when you click Reconcile, so double-check the account name and last four digits of the account number if your bank shows them.

Have your most recent reconciliation handy if you've done one before. QuickBooks remembers where you left off, but knowing your last reconciled balance helps you spot whether something went wrong between then and now.

Marking transactions as cleared

Once you've opened the reconciliation window for your account, QuickBooks shows every transaction since your last reconciliation. Go through your bank statement line by line and click the checkbox next to each transaction that appears on the statement. The checkbox marks that transaction as "cleared" — meaning the bank has processed it.

Transactions you recorded in QuickBooks but that haven't hit your bank account yet should not be checked. These are usually checks you wrote that the recipient hasn't deposited, or transfers you initiated that are still pending. Leave these unchecked; they'll clear in the next reconciliation once the bank processes them.

If you see a transaction on your bank statement that you didn't record in QuickBooks, you can add it directly from the reconciliation window. Click Add Transaction, enter the details, and then mark it as cleared. This is common for bank fees, interest deposits, or automatic payments you forgot to log.

Fixing a reconciliation that doesn't balance

If your QuickBooks balance and bank statement balance don't match, QuickBooks displays the difference at the top of the reconciliation window. This number tells you how far off you are. Start by checking that you entered the correct ending balance from your bank statement — typos happen.

Next, look for transactions on your bank statement that you didn't mark as cleared in QuickBooks. Scroll through the list and make sure every transaction that appears on the statement has a checkmark. If you find one you missed, check it now.

Then check for transactions in QuickBooks that don't appear on your bank statement. These are usually pending items — checks not yet cashed, transfers still processing, or deposits not yet credited. These should remain unchecked. If a transaction has been pending for more than a week or two, contact your bank to confirm it's actually on the way.

If you still can't find the problem, look for duplicate entries or transactions recorded with the wrong amount. Search your QuickBooks register for the account you're reconciling and compare each entry against your bank statement line by line. Once you find and fix the error, start the reconciliation again.

What happens after you finish reconciliation

Once your balances match, click Finish Now. QuickBooks locks that reconciliation and marks all the cleared transactions as reconciled. You can still view and print a reconciliation report, but you cannot edit transactions that have been reconciled without first undoing the reconciliation.

QuickBooks saves a history of all your reconciliations. You can see past reconciliation reports by going to Reports, then searching for Reconciliation. This is useful if you need to prove to an accountant or auditor that your books match your bank records.

For the next month, start a new reconciliation with the new statement. QuickBooks will remember which transactions cleared last month and won't show them again, so you only have to deal with new activity.

Reconciling credit cards and linked accounts

Credit card reconciliation works the same way as bank account reconciliation, except you're matching your QuickBooks entries against your credit card statement instead of a bank statement. The process is identical: open Reconcile, select the credit card account, enter the statement date and ending balance, and mark off transactions.

If you've connected your bank account or credit card to QuickBooks using the bank feed feature, transactions may download automatically. This doesn't mean they're reconciled — you still have to mark them as cleared during reconciliation. The bank feed just saves you from typing them in manually.

Some transactions downloaded from your bank feed may need to be matched to transactions you already entered in QuickBooks. QuickBooks usually does this automatically, but if it doesn't, you can match them manually by clicking the transaction and selecting the matching entry. Once matched, they count as a single transaction during reconciliation.

Common mistakes and how to avoid them

The most common mistake is reconciling with the wrong statement date or ending balance. Double-check your bank statement before you start — the date should be the last day of the statement period, and the balance should be the "ending balance" or "statement balance," not your current balance.

Another frequent error is forgetting to record deposits or expenses in QuickBooks before reconciling. If your bank shows a transaction but you haven't entered it in QuickBooks, you have to add it during reconciliation or go back and enter it first. Either way, it needs to be in QuickBooks before you can mark it as cleared.

Reconciling too infrequently is also a problem. If you wait three months between reconciliations, finding a single missing transaction becomes much harder. Reconcile monthly, ideally within a few days of receiving your statement. Monthly reconciliation takes 15 to 30 minutes; quarterly or annual reconciliation can take hours.

Finally, don't ignore small discrepancies. A $0.50 difference might seem harmless, but it means something is wrong. Find it and fix it before you finish the reconciliation. Small errors compound over time and make future reconciliations harder.

Frequently Asked Questions

Can I reconcile a bank account that's already been reconciled?

Yes, but you have to undo the previous reconciliation first. Go to the account's register, find the reconciliation you want to undo, and click Undo. This unlocks all the transactions from that period so you can edit or re-reconcile them. Use this only if you found an error in a past reconciliation.

What if a check I wrote months ago still hasn't cleared?

Contact your bank and the person or business you wrote the check to. A check that's been outstanding for more than 60 days is unusual and may indicate the recipient lost it or never deposited it. Your bank can sometimes issue a stop payment and help you issue a new check instead.

Do I have to reconcile every month?

Monthly reconciliation is standard practice and catches errors early. However, you can reconcile less frequently if you prefer — quarterly or annually. The longer you wait between reconciliations, the harder it is to find mistakes. Most accountants and bookkeepers recommend monthly reconciliation.

What's the difference between a cleared transaction and a reconciled transaction?

A cleared transaction is one you've marked off during reconciliation — it appears on your bank statement and in QuickBooks. A reconciled transaction is one that was part of a completed reconciliation. Once you finish a reconciliation, all the cleared transactions become reconciled and QuickBooks locks them.

Can I delete a transaction after it's been reconciled?

You can delete a reconciled transaction, but QuickBooks will warn you that it's part of a completed reconciliation. If you delete it, your next reconciliation will be off by that amount. It's better to edit the transaction (change the amount or date) than to delete it outright.