Did you reconcile?
Before I give the basic how-to of reconciling in QuickBooks, let's establish some ground rules:
- A bill, such as phone, electricity, Internet, car payment, etc., is entered as a bill within QuickBooks. When the bill is paid, you are using the Enter Bills/Pay Bills feature.
- Money received is entered either using the Sales Receipt or Create Invoice/Receive Payments feature.
- Deposits are made from undeposited funds by using the Record Deposits feature.
- Purchases made using your debit card are entered into the check register directly or by using the Write Checks or Enter Bills/Pay Bills feature.
If you are following the above on a daily/weekly basis, then reconciling your account should only take a few minutes of your time and should be very easy.
- Click Banking > Reconcile.
- Ensure that the beginning balance is the same as the beginning balance on your bank statement.
- Enter the statement date.
- Enter the ending balance.
- Check off each of the deposits and credits that appear on your bank statement. If you missed a deposit, go back to home and record the deposit.
- Check off each of the checks and payments that appear on your bank statement. If you missed entering a purchase, payment, or check, go back to banking and do it now. Change the amount of any item by double clicking and editing.
- The amount in the lower right hand corner should be zero. Print (to a printer or to adobe pdf) a reconciliation report to be filed.
By doing this each and every month, you are taking a proactive approach toward your finances. You will spend less money on your accountant at tax time, you will enjoy a feeling of better control, and you will have an easier time using QuickBooks' more advanced features.
AccountingWEB would like to thank Maine Accounting  for providing this article.