How to Reconcile in QuickBooks Online: Step-by-Step

Before opening QuickBooks Online's reconcile tool, collect your bank or credit card statement for the period you are reconciling. You will need the statement's ending date and the ending balance printed on the statement. If this is your first reconciliation for the account, you may also need the beginning balance from the first statement for that account.

Ensure all transactions for the period have been entered into QuickBooks before you begin. If you use bank feeds, confirm that all imported transactions have been reviewed, matched, or added. Reconciling before all transactions are recorded will produce a discrepancy that requires additional work to resolve. Keeping a clear record of how long to keep bank statements ensures you always have the documentation needed for reconciliation.

In QuickBooks Online, select Accounting from the left navigation bar, then click Reconcile. If you do not see the Accounting menu, your user role may not include reconciliation permissions — contact your QuickBooks Online account administrator.

On the Reconcile screen, use the Account dropdown to select the bank or credit card account you want to reconcile. QuickBooks will display the most recent reconciliation date and ending balance for that account. Confirm you have selected the correct account before proceeding to avoid reconciling the wrong account. Understanding how many bank accounts your business should have can help you organize which accounts need regular reconciliation.

Enter the Ending balance shown on your bank or credit card statement — this is the closing balance as of the last day of your statement period. Enter the Ending date — the final date of the statement period. Do not use today's date unless your statement actually ends today.

QuickBooks will auto-fill the beginning balance from your prior reconciliation. Verify that this figure matches the beginning balance shown on your current statement. A mismatch in beginning balances typically means a transaction was added, deleted, or modified in a previously reconciled period and must be resolved before you can produce an accurate reconciliation for the current period. If you process payments through services like credit card payment processors, confirm all settlement transactions are entered before reconciling.

QuickBooks Online displays two columns: deposits and credits on one side, payments and checks on the other. Go through your bank statement line by line and click the checkbox next to each matching transaction in QuickBooks to mark it as cleared. As you check items off, the Difference field at the bottom of the screen updates in real time.

Your goal is to reach a Difference of exactly $0.00. Do not check off a QuickBooks transaction that does not appear on your bank statement — it may be outstanding (not yet cleared by the bank) or a duplicate that should be deleted. Any transaction that appears on your statement but is missing in QuickBooks should be added as a new transaction before completing the reconciliation. If your business uses Cash App or similar platforms for payments, ensure those transfers are properly categorized in QuickBooks as well.

If the Difference does not reach $0.00 after marking all matched transactions, you have a discrepancy to investigate. Common causes include a missing transaction, a duplicate entry, a transaction entered with an incorrect amount, or a bank fee not yet recorded in QuickBooks.

Compare your statement line by line against unchecked QuickBooks items. Look for transactions with amounts that are close but not identical — these may indicate a data entry error. Check whether any QuickBooks transactions are dated outside your statement period, as these will not appear in the current reconciliation window but may still affect your balance. Correcting an amount or adding a missing transaction in the register automatically updates the Difference. Understanding how long ACH transfers take can help you identify timing differences between your records and the bank's.

When the Difference shows $0.00, click Finish Now to complete the reconciliation. QuickBooks Online saves the reconciliation and generates a reconciliation report listing all cleared and outstanding transactions for the period. Save or print this report and store it with the corresponding bank statement.

The IRS recommends that businesses retain financial records — including reconciliation records and bank statements — for a minimum of three years from the date the tax return was filed, and potentially longer in some circumstances. Maintaining organized monthly reconciliation records simplifies tax preparation and supports your ability to respond to any IRS inquiries. Also understand how far back the IRS can audit you so you retain sufficient records. If you need a deeper understanding of your business's tax position, reviewing an IRS transcript can provide a complete picture of your tax history.