How to Reconcile Credit Cards in QuickBooks in 5 Quick Steps

quickbooks credit card reconciliation

Proceed to enter the ending balance and date from your statement. If the last statement’s ending date is displayed, check it for accuracy to maintain continuity. Once all details are aligned and verified, you can start the reconciliation by selecting the Start reconciling option.

Step 1: Gather Your Credit Card Statements

quickbooks credit card reconciliation

Let’s get this sorted out and display the transactions on the Reconcile page, joyrideraz. Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions. Entry-level plan limits bills and invoices to five and 20 per month, respectively. Sally Lauckner is an editor on NerdWallet’s small-business team. She has over 15 years of experience in print and online journalism.

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Once you’ve obtained a copy of your bank statement, you can start reconciling. If you’re reconciling multiple months, you’ll want to start with your oldest statement. Next, make sure you enter all transactions for your statement period you plan to reconcile. If there’s transactions that haven’t cleared the account and aren’t on your statement yet, wait to enter them. Before you begin reconciling, you’ll want to review your opening balance. If you’re reconciling an account for the first time, be sure to review its opening balance.

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quickbooks credit card reconciliation

This is explained in detail in our guide on how to enter bills in QuickBooks Online. Below is a sample credit card statement used to illustrate the reconciliation process in this tutorial. Take a moment to review the data in this sample statement as it will be used throughout the process.

  1. To modify any information entered in the previous step, use the Modify option.
  2. Choose the account and the statement you want to undo reconciliation for, and click View Report.
  3. If you find yourself spending too much time on reconciliation or needing to undo reconciliation often, consider engaging an external bookkeeper or accountant to help you with the process.
  4. If there are any discrepancies in the beginning balance, utilize the Locate Discrepancies tool to find and resolve them.

Next, compare the transactions in QuickBooks with those on your credit card statement. Carefully review each transaction for accuracy and make adjustments as needed. When matching transactions, it’s important to compare each entry on your bank statement with the corresponding records in QuickBooks Online, paying close attention to dates and transaction details. If a transaction matches, mark it as reconciled by placing a checkmark next to its amount in QuickBooks Online. Transactions added or matched from online banking are usually pre-selected for convenience. If a transaction appears in QuickBooks Online but not on your statement, do not mark it.

Thank you for choosing QuickBooks Online (QBO) as your accounting tool, Rocco. I can provide detailed insights about connecting and reconciling 13 things bookkeepers do for small businesses a credit card account in our system. Yes, you can follow the suggestion above by creating a journal entry to record the business expense.

Higher-tier plans let users automate workflows and track project profitability, and give access to advanced inventory and analytics tools. Most accounting software goes beyond these tasks with additional built-in modules for invoicing and billing as well as inventory management, among other functions. The more your accounting software becomes a one-stop shop for these financial chores, the fewer integrations you need to consider.

quickbooks credit card reconciliation

While the most likely cause is an error in your QuickBooks accounting, don’t delete the transaction because it may affect other accounts or periods. For your reconciliation to work, the beginning balance calculated by QuickBooks must match the ending balance on the last statement reconciled. If there were any changes to previously reconciled transactions, the beginning balance may be off—and if it is, QuickBooks provides a link to help you identify the transaction that changed.

Reporting capabilities increase with each plan, but even the least expensive Simple Start plan includes more than 50 reports. One common task that your finance teams have to handle every month even if they don’t like it is reconciling credit cards. You may see a description on the first entry of “pending” while the second download occurrence is the final transaction. In other words, there’s no need — or even any purpose — to reconcile accounts like fixed assets or intangible assets unless there is an outside document you can refer to for reconciliation.

This step is not compulsory to do but if you want to create a bill or make a payment towards the credit card balance, you can do it after QuickBooks gives you a message that the reconciliation is completed. In the prior step of tracing transactions, you placed a mark next to every transaction on your statement that appears in QuickBooks. Now, it’s time to look for any transactions on your statement that do not contain a mark next to them. If unmarked transactions are valid, they should be added to QuickBooks.

Easily run financial statements that show exactly where your business stands. Access your cash flow statement, balance sheet, and profit and loss statement in just a few clicks. Schedule reports to be generated and emailed daily, weekly, or monthly. You’ll want to look at your statement, starting with the first transaction listed and find that same transaction in the Reconciliation window in QuickBooks. Identify and input any transactions that may be missing from QuickBooks but are present in your credit card statement to ensure comprehensive record synchronization. In your first reconciliation, ensure that the opening balance in QuickBooks Desktop is in sync with the balance of your real-life bank account as of your chosen start date.

The paid plan offers more competitive online payment processing rates, too (starting at 2.9% per transaction vs. the free plan’s 2.9% + $0.60 per transaction). Knowing how to reconcile credit cards in QuickBooks is a crucial step for good bookkeeping. Through reconciling the credit cards, users can ensure that the activity of their credit card matches the activity of its statements in their QuickBooks account. Today we are going to show you how to make that reconciliation process become easier with step-by-step instructions. Stay tuned and let’s learn what exactly is reconciliation, why it’s so important, and how to reconcile credit cards in QuickBooks. By reconciling your credit card account within the platform, you can effectively manage the balance, identify discrepancies, and ensure that your financial data is up-to-date and accurate.

By comparing your credit card statement with your QuickBooks records, you can promptly identify any transactions that are not reflected in your accounting software. This meticulous process is crucial for maintaining balance and accuracy in financial records. To reconcile a credit card in QuickBooks, you can follow a series of steps to ensure that your records match the transactions on your credit card statements and maintain an accurate financial overview. By reconciling credit card transactions, users gain insights into their spending habits, budgeting, and financial health.

This will show you cleared transactions and any changes made after the transaction that may not show in your discrepancies. To create a new transaction, open the Enter Credit Card Charges screen from the Banking menu. Enter the correct information based on your credit card statement. Let me share information to resolve the issue with your transactions flowing through your subaccounts while the payments are showing in the parent account, @Marissa Lethin. It seems like the questions asked haven’t been answered on this feed. I just ran into the same problem where we have a parent credit card with 3 other cards including my own.


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