In order to have a better understanding of the cash flow of the business, it is very important to know how important bank reconciliation is. With this article, we aim at educating you about the Bank Reconciliation through the QuickBooks Pro.
What is QuickBooks Pro Bank Reconciliation
Ensure that your business bank accounts are reconciled monthly. Reconciling means getting the transactions on the bank statements matched with the ones recorded in the QuickBooks Pro. By Reconciling your bank accounts on a regular basis, you will be able to ensure that:
- If there is any discrepancy between the records owned by you and the bank, then it is resolved timely
- You receive the notification timely for any kind of fraudulent transactions
- In order to ensure precision and accuracy of the accounting records, make sure that reconciliation of your bank and credit account in QuickBooks Pro is done on daily basis, without falling short
Benefits of QuickBooks Pro Bank Reconciliation
- Transactions done on bank statement will be recorded in the QuickBooks Pro
- Reconciled transactions will be marked as cleared in QuickBooks Pro
- You can easily run the Bank reconciliation reports, having clarity on the details such as, which items have cleared bank and what all are still outstanding, means uncleared
- Financial statement of yours like balance sheet and profit and loss statement will be advanced
- Reconciled transactions will be marked as emptied in QuickBooks Pro
- You can run bank reconciliation address easily, which have the details of the items which have emptied bank and also the ones that are still outstanding
- All the transactions related with bank statement will be listed in QuickBooks Pro
Before pursuing these steps for reconciliation, ensure that the bank statement is available with you of bank account, which you are willing to reconcile.
- Make sure that your credit and bank card account are arranged perfectly in QuickBooks Pro and have correct beginning balance
- Take the back up of the QuickBooks Pro company file
- To designate the items that are selected, on the statement, the pencil may also be available nearby. Make sure that you take the copy of the credit card and bank statement
- All the uncleared transactions are filed for the period of statement
Importance of QuickBooks Pro Bank Reconciliation
Bank Reconciliation is a method of accounting, which make use of the two sets of records, in order to ensure that the figures are in concurrence and authentic too.
It helps in concluding that whether money in account event and amount spent is moved and ensure that the values of two are equalized when the recording period ends. Reconciling the credit or bank card helps in checking the accounting records, the amount receivable and the account payable and then matching it up with the recorded transaction on bank statement.
Why QuickBooks Pro Bank Reconciliation is Valuable?
Reconciling is of vital importance as it will help you in reviewing your accounts daily and to detect the problem at earliest if any. It is highly valuable for accounts, individuals and businesses so that they can remain aware of any deceptive activity.
It helps in catching up the sign of any kind of fraud, beforehand.
By reconciling the account timely, you may get to know about the problems, which require your attention. If we go by the example then you may have to re-evaluate that how the cash flow has to be handled and also the accounts receivable.
When to Reconcile
Reviewing your account on a monthly basis is reasonable. Specially for the business and positions that are high in volume and where the chances of fraud are also high, it is better to reconcile more often.
If the Accounts doesn’t get reconciled
There may be the instances where you just can’t reconcile accounts. There is no need to worry in case the difference is small. You can fix the error while reconciling next month.
Also Read: End of a Reconciliation in QuickBooks Online
Why Accounting Problem
Our QuickBooks customer support team can help you out further to understand this in detail. Our QuickBooks enterprise support helpdesk possesses excellent knowledge and can guide you through the process. To get in touch with our QuickBooks POS Support team, call on Quickbooks Support Phone Number.