Reconciliation in QuickBooks is an important part to maintain healthy accounting books. When you connect your QuickBooks bank account with your QuickBooks account, you can reconcile your QuickBooks statements. Further, if you are dealing or making payments with credit cards in your business, then you should reconcile your credit cards also in QuickBooks accounts. Reconciling credit card with QuickBooks will keep track and match the credit card payments with your QuickBooks statements. This will help you in avoiding further confusion that can occur while preparing for tax filing. In order to keep a smooth and understandable book of records, you should maintain clean accounts in your books.
Errors in the QuickBooks Credit Card Reconciliation Process
Credit card reconciliation is quite similar to the reconciliation of QuickBooks. You have to put the ending statement balance and compare the credit card transactions with QuickBooks statements. But, there can be some errors that can hinder the process of the Reconciliation of credit cards in QuickBooks:
- There can be some transactions that you have not entered in the QuickBooks statements yet. This can give the “missing transactions” error.
- If the bank statement and QuickBooks statement show a different amount of the same transactions, then it can give an error in reconciliation.
- Try to remove duplicate transactions from the bank statement and in the QuickBooks statements. Otherwise, QuickBooks will not let you carry forward the credit card reconciliation process.
- Any errors that are present in your bank account but are not shown in your QuickBooks statements should be analyzed carefully as it can be fraudulent.
Also Read: QuickBooks Tool Hub
How To Reconcile Credit Card in QuickBooks?
Given-below are the steps to reconcile credit card in QuickBooks:
- From the left menu bar, move your cursor to the ‘Accounting’ menu.
- Choose the ‘Reconcile’ option.
- Choose your credit card account and fill out all the necessary information.
- You have to fill out the information like account type, last date of ending statement, beginning balance, current balance, and ending balance along with the financial charges (if any).
- Compare the credit card transactions with your QuickBooks account statements. Also, match the transactions with your bank account statement too.
- You have to check these fields: ending balance of both the statements, cleared balance, and difference balance between ending balance and cleared balance.
- For cleared transactions, in the right column of each transaction, click on the ‘Radial’ button. This will make the transactions included in the cleared balance.
- You have to remove the transactions that have incorrect dates, incorrect amounts, wrong accounts, or any duplicate transactions from the statements.
- After that, you have to make sure that the difference is zero. Keep reconciling your statements till you see zero on your reconciliation screen.
- When the reconciliation will complete, in the upper right corner of the column, click on the green-colored option of ‘Finish Now’.
- Your screen will display a message like this: “You reconciled this account” that confirms your successful reconciliation process.
Also Read: How to Undo Reconcile in QuickBooks Online?
You can check your reconciliation by making a credit card payment. With the vendor’s invoice, you can either pay your bill now or pay later.
Steps to Pay the Bill Now Through Reconciled Credit Card
Follow the steps if you want to pay your bill now:
- Go to the ‘Pay all’ option or ‘Pay in Portion’ option.
- This will redirect you to the check printing screen where you have to write & print a check for the credit card balance you want to pay.
- The category will be automatically set to the default credit card, you are not required to change it.
Steps to Enter a Bill to Pay Later
Below are the steps to enter a credit card bill to pay later:
- Navigate to the ‘Create Bill’ screen.
- Or, click on the ‘Enter a Bill’ option to pay later.
- Enter the bill and choose the due date that you want to pay the credit card balance amount.
- The category should be the recently created credit card.
Reconciliation is a crucial part of maintaining a good accounting record. QuickBooks provides an easy way to reconcile your QuickBooks account and bank account. In case you are facing trouble in reconciling your accounts in QuickBooks, you should contact the QuickBooks Error Support experts on this number: +1(860) 544-6044.
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