There can be a scenario when you have not reconciled your QuickBooks account statement with your bank account for several months or even years. In such a case, you can reconcile multiple old transactions in QuickBooks desktop instead of reconciling monthly statements one at a time. It is recommended to do reconciliation on a yearly basis as it saves much of your time and efforts.
Under the yearly reconciliation method, the adjustments, charges, fees, interest, and taxes you enter will be applicable on the year of transaction proceeded. However, you can still consult your accountants for providing you the best method according to your preference.
Important Things To Do Before Reconcile Multiple Months in QuickBooks
The following are the important things that you are required to do before you proceed with reconcile multiple months in QuickBooks:
- Create and restore a backup of your company files in the QuickBooks database.
- Choose your financial statement in order to use for checking the ending balance.
Steps to Reconcile Statement One Year At A Time
Below are the steps to reconcile statements one year at a time:
- Proceed with the ‘Banking’ menu.
- Choose the ‘Reconcile’ option.
- From the drop-down menu of Account, select the ‘Account’ that you want to reconcile.
- From the field of ‘Statement Date’, select the date from the financial statement you choose.
- In the field of ‘Ending Balance’, enter the ending balance that is shown in your financial statement.
- After that, you are required to compare the beginning balance to the opening balance that is displayed in the older statement.
- Now, enter the total Service charges, interest, and taxes carefully.
- Enter the service charges of all the financial statements for the year you are reconciling and then enter the sum of all the service charges in the field of ‘Service Charges’.
- After that, you need to enter the date that is showing in the financial statement.
- From the ‘Account’ drop-down menu, select the accurate account for the service charges.
- Repeat the last three steps for processing the ‘Interest Earned’, and enter the sum in the field of ‘Earned Interest’.
- Click on the ‘Continue’ option.
- This will open the window of ‘Reconcile’.
- From the upper right corner window, Choose the ‘Hide Transaction after the statement’s end date’. This will make the QuickBooks show you the transaction dated statement.
- Checkmark the boxes of statements that display on the financial statement you chosed.
- View the difference in the amount of ending balance and opening balance.
- If the difference is $0, it indicates that you have successfully reconciled your statement.
- If the difference is not $0, make it zero by comparing transactions from the statement and making adjustments.
- Repeat the steps for the subsequent year’s reconciliation.
The above article is based on the information regarding How to Reconcile Multiple Months in QuickBooks. There are many QuickBooks Bank Reconciliation Problems that users face in the application. If you are not able to reconcile it manually, you can take help from the QuickBooks Error Support experts from this number: +1- 877- 349- 3776.