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How to reconcile in QuickBooks Online
Reconciling means checking that what QuickBooks Online (QBO) shows for an account matches the bank or credit card statement. It is one of the first tasks US-process teams give a new bookkeeper, and one of the most common interview questions. Here is the process in plain English.
Updated · By the Talenta Pros team
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In short
Open Reconcile in QuickBooks Online, choose the account, and enter the ending date and ending balance from the statement. Tick every deposit and payment that appears on the statement until the Difference shows $0.00, then click Finish now and keep the reconciliation report. If the difference will not reach $0.00, find the cause instead of forcing an adjustment.
What you need first
- The statement for the month you are reconciling (bank, credit card or loan), with its ending date and ending balance.
- An up-to-date bank feed: review the For review tab and match or add every line for that period, so the transactions exist in QBO before you reconcile.
- Last month reconciled: reconcile months in order. The beginning balance QBO shows should equal the beginning balance on the statement.
How to reconcile a bank account in QBO
- Open Reconcile. It sits under Accounting (or the gear menu, under Tools). Intuit moves menus from time to time, so search for "Reconcile" if you cannot see it.
- Choose the account you want to reconcile, such as Checking.
- Check the beginning balance QBO shows against the statement. If they differ, stop and fix that first (see below).
- Enter the statement ending date and ending balance exactly as printed on the statement. Some screens also let you enter a service charge or interest earned that is on the statement but not yet in QBO.
- Click Start reconciling. QBO lists payments and deposits for the account up to the ending date.
- Tick each transaction that appears on the statement, comparing date and amount. Leave items that have not cleared the bank yet, such as a check the vendor has not cashed, unticked.
- Watch the Difference. When it shows $0.00, click Finish now.
- Keep the report. QBO creates a reconciliation report; save it or attach it to the client's month-end file.
Reconciling credit card and loan accounts
The steps are the same. For a credit card, the ending balance is the amount owed on the statement, and you tick charges, refunds and card payments. A card payment made from the bank is one transfer that appears in both accounts, so it should be matched once in each bank feed, not added twice. For a loan, the statement shows the principal balance; interest belongs in an expense account, not in the loan balance.
When the difference will not reach $0.00
- Typing errors: re-check the statement ending date and ending balance you entered.
- Beginning balance does not match: a transaction that was already reconciled has been edited, deleted or un-ticked. The reconciliation history and the History by account view help you find which one.
- Missing items: a statement line with no matching QBO transaction. Go back to the bank feed and match or add it.
- Duplicates: the same payment entered by hand and also added from the bank feed. Delete the extra one, usually the one that was added, after checking which is linked to the invoice or bill.
- Wrong amount or wrong account: a transaction posted to a different bank account, or a transposed number (a difference that divides evenly by 9 is often a swapped pair of digits).
Avoid finishing with a difference. QBO can post an adjustment to balance the account, but that hides the error inside the books. Find the cause, fix it, then finish.
Why reconciliation matters to US clients
Reconciliation is part of every month-end close: bank feeds, reconcile every bank and card account, review AR and AP aging, post adjustments, review reports, then close the period. Clients and their CPAs rely on reconciled accounts before they read the Profit & Loss or file taxes. That is why interviewers ask how you reconcile and what you check when it does not balance. See more questions in QuickBooks Online interview questions.
Learn and practise reconciliation with Talenta Pros
The Banking & Reconciliation module of the Talenta Pros course has 7 lessons, including bank feeds, categorize or match, reconciling an account, reconciling credit cards and loan accounts, and fixing reconciliation discrepancies. You then reconcile accounts against their statements in Talenta Practice Books, a QuickBooks-style practice company inside the portal, where tasks tick themselves when you are right. Lessons are in English, Hindi and Telugu. See the full curriculum.
| Plan | Price (one-time, + GST) | Lesson languages | Access |
|---|---|---|---|
| Best Pros | ₹999 | English | 1 year |
| Successful Pros | ₹1,499 launch offer (regular ₹1,999) | English + Hindi or Telugu | 1 year |
| Advanced Pros | ₹2,999 | All languages | Lifetime |
All prices exclude 18% GST. Try Module 1 free for 7 days. Talenta Pros is an independent training provider, not affiliated with Intuit. It provides training and job support; it does not guarantee or offer jobs.
Common questions
How often should you reconcile in QuickBooks Online?
Usually once a month, when each bank, credit card and loan statement arrives, as part of month-end close. Busy accounts can be reconciled more often, but always in date order.
What does it mean if the beginning balance does not match the statement?
A transaction from a period you already reconciled has been changed, deleted or un-ticked. Use the reconciliation history and the History by account view to find it and put it back before reconciling the new month.
Can you undo a reconciliation in QuickBooks Online?
In QuickBooks Online Accountant, an accountant user can undo a reconciliation from the reconciliation history. Otherwise you un-tick individual transactions, which is why it is better to fix errors carefully than to undo whole months.
Should I finish a reconciliation with a difference?
No. QBO can post an adjustment to force the account to balance, but it hides the real error. Find the missing, duplicate or wrong transaction first.
Can I learn QuickBooks reconciliation in Telugu or Hindi?
Yes. Talenta Pros lessons, including the Banking & Reconciliation module, are available in English, Hindi and Telugu, with Tamil, Malayalam and Kannada coming soon.
More free guides
- What is QuickBooks Online?: What QBO does, who uses it, key terms and how it differs from QuickBooks Desktop.
- QuickBooks Online tips: Short, practical QBO tips for beginners, added regularly.
- 1099 vs W-2 explained: Contractor vs employee, Forms 1099-NEC and W-2, deadlines and how QBO handles both.
- US bookkeeping jobs from India: Roles, the QuickBooks skills employers test, and a step-by-step plan.
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