For every transaction that matches your statement, click on the checkbox next to the transaction. As you put a checkmark on a transaction, you’ll notice that the cleared balance and difference on the lower right side of the screen adjust. You should reconcile bank checks, savings accounts, and credit cards every month. Get your bank statement and match the transactions with that on QuickBooks. This helps in keeping the books balanced and accurate. However, if you don’t wish to connect online banking with QuickBooks, you’ll need to enter the opening balance manually.
If this is the only way to fix the discrepancy, then this is pretty cumbersome for a paid product like this. It’s better off if the account just downloaded all transactions in one account instead of one for each cardholder. The way QBO and Chase have this setup just complicates the whole process way more than it should. I have never seen this on Mint or Personal Capital, and those are free services. This will help me provide the exact information needed to resolve those transactions from the bank feeds. However, if you see existing transactions recorded in QuickBooks manually that are identical to the downloaded ones, link them together to avoid getting duplicates.
linking credit card account to quickbooks online
This is explained in detail in our guide on how to enter bills in QuickBooks Online. A reconciliation of a bank or credit card account compares the statement to what is in QuickBooks. This is the same idea as balancing an account and checkbook in more manual times.
- This is because all transactions roll up into it and statements are only available on parent accounts.
- You can be more confident that accounts will be up to date and accurate.
- I’ve been reconciling the sub credit cards individually, and choosing to enter a “bill” at the end of the reconciliations.
- This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals.
- This is a time-saving feature that can benefit any business user.
Frequent reconciliation is important to ensure your QuickBooks accounts remain accurate. Reconciling accounts once per month is good practice. QuickBooks will load the statements and facilitate a side-by-side comparison. If QuickBooks is not connected to online accounts, the statements will not be loaded.
However, you’ll need to import your past bank transactions through supported file formats manually. You can check the previous reconciliation report, which will show all the adjustments on the list. It also shows the cleared transactions and changes that are made after the transactions that do not show discrepancies. Then for us to manually match specific Credit Card payments to invoices, at least choose the closest amount and date of the transactions to match the invoice.
How To Reconcile Credit Card Accounts in QuickBooks Online
However, they each are required to download the transactions on the account, since they don’t show up in K Jr card downloads. THis is why I created the Main account Chase CC and put all the cards as sub accounts below it. The bank balance under K Jr card is matching the IN QUICKBOOKS balance for the main Chase CC account I made. Make sure you enter all transactions for the bank statement period you plan to reconcile. If there are transactions that haven’t cleared your bank yet and aren’t on your statement, wait to enter them.
How To Reconcile a Credit Card Balance in QuickBooks Desktop
Keep me posted if you need additional information and I’ll get back to you. Ask questions, get answers, and join our large community of QuickBooks users. Before you start with reconciliation, make sure to back up your company file.
Step 3: Start your reconciliation
You can use MT Online or or one of the converter tools (e.g csv2qbo @ $60 one time license) as a workaround. I understand how important it is to identify deposits of your customer payments, Frank. Additionally, you can set up bank rules to streamline your categorization process. I’m asking to know more about how the sub account and parent account work?
For multiple credit cards from Chase, it’s recommended to have a parent account. Then, only sub-accounts should be connected on your bank feeds. This is for you to easily apply payments and just reconcile the parent account. Just like balancing your checkbook, you need to review your accounts in QuickBooks to make sure they match your real-life bank and credit card statements.
Quick summary: Important points for reconciling in QuickBooks
It ensures that QuickBooks entries align with those in your bank and credit card account statements. If there’s a transaction on your statement that isn’t in QuickBooks but the transaction is correct, adjusting entry for interest on capital calculation and example then you need to add it to QuickBooks. In our sample credit card statement, you’ll notice that the transaction for Michael Kretchmar for the amount of $300 isn’t recorded in QuickBooks.
If there are transactions from the previous month that are cleared in this month, you have to reconcile them in the current month’s reconciliation. By doing this, you can ensure that your financial records are accurate and that the balances in your bank account and QuickBooks Online (QBO) match. When you connect to online banking, ensure you know how your bank sends the downloaded transactions. If the transaction downloads to one account, connect the parent account. If it downloads to individual accounts, you can connect the subaccount instead of the parent account.