6 Tips For Error-Free Bank Reconciliation in QuickBooks

Posted on June 8, 2015

Have you tried reconciling your bank transactions in QuickBooks and faced errors or setbacks? If yes, then do read these useful tips on how to avoid errors while reconciling your bank accounts. 

Bank reconciliation is the process performed by an enterprise to ensure that the company’s bank and financial records such as, balance sheet, check register and general ledger account are accurate and up-to-date. Bank reconciliation is often time consuming and tedious. It can also get complicated when there are multiple banks to be reconciled. This is where outsourcing can help.

By outsourcing bank reconciliation services, you can not only accelerate the process of bank reconciliation, but also ensure better accuracy. Outsourcing bank reconciliation is also a great way to obtain a consistent data source, reduce cost, increase ROI and leverage the superior quality that only comes with offshoring.

Have you tried reconciling your bank transactions in QuickBooks and faced errors or setbacks? If yes, then do try these useful tips the next time you use QuickBooks to reconcile your bank accounts.

1. Ensure that you are working with the right bank account: If you own several bank accounts, it important to make sure that you are using the right accounts before attempting any bank reconciliations. This way, you will not end up making deposits or recording checks in the wrong accounts.

2. Look out for transposed numbers: The most common mistake while making bank reconciliations is to switch a number. For example, you could enter 45 instead of 54. However, transposition mistakes can be divisible by nine. But there should be no other error in the bank reconciliation.

3. Check for misplaced transactions: If you can see a transaction on a bank statement that has cleared the bank, but you are unable to see it in the bank reconciliation window, then enter the missing transaction by choosing a date within the month you are reconciling. If you use a bank debit card, you may notice that several service charges, direct deposits, cash machine withdrawals and debit card purchases were not entered into QuickBooks. Make it a point to enter each of these while reconciling.

If you do not see a transaction that you have entered, you can use the find feature within the Edit Menu to find a transaction based on the amount. You can then edit the transaction by choosing the right bank account.

4. Search for inverted transaction errors: Check if you have entered a write check transaction by accident when the transaction must have been a deposit.

5. Look out for transactions that are equal to the difference: Make sure that you have placed a check mark next to checks that have been cleared.

6. Check the box on top of the QuickBooks screen: By checking the “Hide transactions after the statement’s end date”, you can remove any transaction that was posted after the statement ending date. This will make your working screen a lost less messy.

We hope these tips will help you out, the next time you reconcile your bank accounts in Quickbooks.

Do you want to find out more about outsourcing bank reconciliation? If yes, then read about our Bank Reconciliation Services.

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