Clear Payment removes a payment record from your QuickBooks register without deleting it
When you mark a payment as cleared in QuickBooks, you are telling the software that the payment has been confirmed—usually by matching it against your bank statement or credit card statement. The payment stays in your records, but QuickBooks flags it as verified and moves it out of the way when you are reconciling accounts.
This is different from deleting a payment. Clearing keeps the transaction history intact for tax records and audits. Deleting removes it entirely, which can create gaps in your account ledger and cause reconciliation problems later.
The cleared status is the middle step between recording a payment and fully reconciling your account. Once you have cleared all payments that appear on your statement, your QuickBooks balance should match your bank balance exactly.
Key Takeaways
- Clearing a payment marks it as verified against your bank or credit card statement without removing it from your records.
- A cleared payment stays in QuickBooks for tax and audit purposes but stops appearing in your uncleared transaction list.
- You clear payments during the reconciliation process by matching them one-by-one to items on your statement.
- If you clear a payment by mistake, you can uncheck the cleared box to reverse the status without losing the transaction.
How to clear a payment in QuickBooks Online
Open the account you want to reconcile—usually your checking or credit card account. Go to the Reconcile tab and select the account from the dropdown. QuickBooks will show you a list of all transactions that have not yet been cleared, along with their dates and amounts.
Find the payment on your bank or credit card statement. Click the checkbox next to that payment in QuickBooks. The checkbox will fill in, and the payment moves into the "cleared" section. Repeat this for every payment that appears on your statement.
As you clear payments, QuickBooks calculates the difference between your statement balance and your cleared balance. When that difference reaches zero, your account is fully reconciled. If there is still a gap, you have either missed a payment or recorded one incorrectly.
How to clear a payment in QuickBooks Desktop
Open the register for the account you want to reconcile. In the left column, you will see a small empty square next to each transaction. This square is the cleared checkbox.
Pull up your bank or credit card statement. For each payment that appears on the statement, click the checkbox next to that payment in the register. A checkmark will appear, and the payment is now marked as cleared.
QuickBooks Desktop shows your cleared balance at the bottom of the register window. When your cleared balance matches your statement balance, reconciliation is complete. If it does not match, scroll through the register to find any payments you missed or recorded with the wrong amount.
What happens when you clear a payment
Clearing a payment does not change the amount or the date. It only changes the status. The payment remains in your account history, searchable and visible in reports, but it no longer appears in lists of uncleared transactions.
Once a payment is cleared, it is locked against accidental changes in most QuickBooks versions. If you need to edit a cleared payment, you may have to uncheck it first, make the change, and then clear it again. This protection prevents you from accidentally altering transactions that have already been verified against your bank statement.
Cleared payments still count toward your account balance and still appear in profit-and-loss reports, cash flow reports, and tax documents. Clearing only affects reconciliation—it tells QuickBooks that you have confirmed the payment against an external source.
The difference between cleared, reconciled, and deleted
Cleared means you have checked the payment against your statement and confirmed it is correct. The payment is still in your records and still affects your balance.
Reconciled means your entire account—all cleared payments plus your opening balance—matches your bank or credit card statement exactly. Reconciliation is the end goal; clearing is the process you use to get there.
Deleted means the payment is removed from QuickBooks entirely. You lose the transaction history, your balance changes, and your records no longer match what your bank has on file. Deleted payments can cause serious problems during tax time or if you are audited. Do not delete a payment unless you are certain it was entered by mistake.
Why you should clear payments instead of deleting them
Your bank keeps a permanent record of every payment it processes. If you delete a payment from QuickBooks but your bank still shows it, your records will never match. This creates confusion during reconciliation and makes it harder to track where money actually went.
Tax authorities and auditors expect your QuickBooks records to match your bank statements. If you delete payments, you are creating a gap that is hard to explain. Clearing payments keeps your records complete and honest.
If you discover later that a cleared payment was wrong—the amount was incorrect, or it was sent to the wrong person—you can uncheck the cleared box, edit or delete the payment, and then record the correction. But the original payment stays in your history so you can see what happened and when.
What to do if you cleared a payment by mistake
Open the register or reconciliation screen for that account. Find the payment you cleared by mistake. Click the checkbox next to it again to uncheck it. The cleared status is removed, and the payment goes back into your uncleared list.
If you need to delete the payment entirely, you can do that now—but only after you have unchecked it. If you need to edit the amount or date, uncheck it first, make your changes, and then decide whether to clear it again.
If you have already finished reconciliation and submitted your records, unchecking a cleared payment will throw off your reconciliation. You may need to start the reconciliation process over for that account. This is why it is important to double-check your statement before you clear payments.
Frequently Asked Questions
Can I clear a payment that is not on my statement yet?
No. Clear only payments that appear on your current bank or credit card statement. If a payment has not posted yet, leave it unchecked. It will clear automatically once it shows up on your next statement and you reconcile again.
Does clearing a payment mean it has been received by the other person?
Not necessarily. Clearing means your bank or credit card company has processed the payment. The recipient may not have received or deposited it yet. If you are paying a person or business, confirm receipt separately—do not assume clearing means the payment arrived.
What if my cleared balance does not match my statement balance?
You have either missed a payment on your statement or recorded a payment with the wrong amount. Go through your statement line by line and compare it to your cleared list in QuickBooks. Look for payments with different amounts or dates that do not match exactly.
Can I uncleared a payment after I have reconciled my account?
Yes, but it will break your reconciliation. Once you uncheck a cleared payment, your account balance will no longer match your statement, and you will need to reconcile again. Only uncleared a payment if you have a good reason—like discovering the amount was wrong.
Does clearing a payment affect my tax records?
No. Cleared and uncleared payments both count toward your income and expenses for tax purposes. Clearing only affects reconciliation. Your tax reports will include all payments, cleared or not.