The basic reconciliation process in QuickBooks Online

To reconcile your checking account in QuickBooks Online, you match the transactions QuickBooks recorded against the transactions your bank shows. Start by gathering your bank statement — the one you receive from your bank each month, whether by mail or email. Open QuickBooks Online, go to the Accounting menu on the left sidebar, and select Reconcile. Choose the bank account you want to reconcile from the dropdown menu.

QuickBooks will ask you to enter the ending balance from your bank statement and the ending date. These two numbers come directly from your statement — look at the bottom of the first page. Enter them exactly as they appear. QuickBooks will then show you all the transactions it has recorded in that account since your last reconciliation, sorted by date.

Your job is to check off each transaction in QuickBooks that also appears on your bank statement. As you check them off, QuickBooks calculates the difference between what it shows and what the bank shows. When that difference reaches zero, your account is reconciled.

Key Takeaways

  • Reconciliation means matching QuickBooks transactions against your actual bank statement line by line.
  • You enter the ending balance and date from your bank statement, then check off each matching transaction in QuickBooks.
  • The reconciliation is complete when QuickBooks shows a difference of zero.
  • Unmatched transactions — ones on the bank statement but not in QuickBooks, or vice versa — must be found and entered before you finish.
  • Once you mark reconciliation as complete, QuickBooks locks those transactions so they cannot be accidentally changed later.

Finding transactions that don't match

If your difference is not zero after checking off all the obvious matches, you have a transaction mismatch. This usually means one of three things: a transaction is on your bank statement but not in QuickBooks, a transaction is in QuickBooks but not on the bank statement yet, or an amount is recorded differently in each place.

Start by looking at your bank statement and comparing it line by line to the transactions QuickBooks shows. Bank fees, interest deposits, and automatic payments often get missed because they were never entered into QuickBooks. If you find a transaction on the bank statement that is not in QuickBooks, you need to enter it. Go to the + New button, select Check or Deposit depending on whether money left or entered the account, fill in the details, and save it. Then return to reconciliation and check it off.

If a transaction is in QuickBooks but not on the bank statement, it may not have cleared the bank yet. Pending transactions sometimes take several days to show up. Leave it unchecked for now and reconcile again next month. If it still does not appear after two weeks, contact your bank to confirm they received it.

If an amount is different — for example, QuickBooks shows $50 but the bank shows $49.95 — look at the transaction in QuickBooks and correct it to match the bank. Click on the transaction to open it, change the amount, and save. Then return to reconciliation and check it off.

Handling timing differences and pending transactions

The most common reason reconciliation does not balance is timing. You may have written a check or made a deposit that QuickBooks recorded on one date but the bank did not process until later. This is normal and expected.

When you reconcile, only check off transactions that have actually appeared on the bank statement. If you wrote a check on the 15th but it did not clear until the 22nd, do not check it off until the 22nd appears on your statement. QuickBooks will show a temporary difference, but that difference will disappear once the bank processes the transaction.

Some banks show pending transactions separately from cleared transactions on their online portal. Make sure you are looking at your official statement, not just the pending list. The official statement is what you reconcile against.

Correcting errors after reconciliation is marked complete

Once you click Finish Now and mark the reconciliation as complete, QuickBooks locks those transactions. You cannot edit them directly. If you discover an error after reconciliation is finished, you have two options: undo the reconciliation or create an adjusting transaction.

To undo reconciliation, go back to Accounting > Reconcile, find the account, and look for the option to Undo next to the completed reconciliation. This unlocks all the transactions so you can edit them. Make your correction, then reconcile again.

If the error is small — for example, you recorded a deposit as $100 when it was actually $101 — you can create a small adjusting deposit or check to make up the difference instead of undoing the whole reconciliation. This keeps your reconciliation history clean and is often faster if you are reconciling many months at once.

What to do if the difference will not reach zero

If you have checked off all matching transactions and the difference is still not zero, work through these steps in order. First, add up all the unchecked transactions in QuickBooks and all the unchecked transactions on your bank statement. If the totals are the same, you may have simply missed checking something off — go through both lists again slowly.

Second, look for a transaction that is exactly the size of your remaining difference. For example, if your difference is $25, search QuickBooks for any $25 transaction you might have missed. Also search your bank statement for the same amount. This catches duplicate entries or transactions recorded in the wrong account.

Third, check whether any transactions are recorded in QuickBooks with a different amount than on the bank statement. A $50 check that cleared for $49.95 will create a 5-cent difference. Correct the amount in QuickBooks to match the bank.

If you still cannot find the problem after these steps, contact your bank and ask them to confirm the ending balance and list every transaction that cleared during the period you are reconciling. Compare that list to what QuickBooks shows. Banks can sometimes process transactions in a different order than they appear online, which can make matching difficult.

Reconciling multiple months at once

If you have not reconciled in several months, reconcile one month at a time rather than trying to do them all at once. Start with the oldest month. Gather the bank statement for that month, enter the ending balance and date, and reconcile as normal. Once that month balances, move to the next month.

This approach is slower but catches errors faster. If you try to reconcile six months in one session and the difference is large, you will not know which month contains the error. Doing one month at a time narrows the problem down immediately.

QuickBooks remembers which months you have already reconciled, so you can close the reconciliation window and come back to it later without losing your progress. Your checked-off transactions stay checked off.

Frequently Asked Questions

Can I reconcile a credit card in QuickBooks Online the same way?

Yes. The process is identical — you enter the statement ending balance and date, check off matching transactions, and finish when the difference is zero. Credit card statements work the same way as bank statements, so the reconciliation steps do not change.

What if I reconciled wrong and did not notice for two months?

Undo the reconciliation for the month that was wrong, correct the error, and reconcile again. You may need to undo multiple months if the error carried forward, but QuickBooks will let you do that. Start with the earliest wrong month and work forward.

Do I have to reconcile every month?

You do not have to, but monthly reconciliation catches errors early and keeps your records accurate. If you reconcile quarterly or yearly instead, errors can hide for months and become harder to find. Most accountants recommend monthly reconciliation.

What does it mean if QuickBooks shows a difference but the bank says the account is correct?

You have a transaction in QuickBooks that the bank does not have, or a transaction amount is wrong. Look for checks or deposits you recorded but the bank never received, or transactions with incorrect amounts. Correct or delete the mismatched transaction and reconcile again.

Can I reconcile if I have not entered all my transactions yet?

You can start, but you will not finish until all transactions are entered. As you find missing transactions on your bank statement, enter them into QuickBooks and check them off. This is actually a good way to catch missing transactions — reconciliation forces you to account for every line on the statement.