With the help of Quickbooks, reconciliation is no longer a time-consuming task.
#How to reconcile in quickbooks desktop how to#
Things go wrong occasionally, but you shouldn’t worry about how to deal with the reconciling process, accounting automation software QuickBooks has made it super easy. Without that proof, your company may fail an audit and miss out on potential investment, even face legal problems, and those are things that all businesses never want them to happen.īanks and credit card processors are human and they can make mistakes so you cannot expect their statements to be 100% correct all the time. This is even more essential during an audit because, at that time, the tax office or a third-party auditor will need proof of every payment that took place. Reconciliation uses further documentary evidence to prove your book is accurate, using bank statements, receipts, and credit card statements to verify that each transaction is exactly what you claim it to be. Reconciling credit cards is vital because it shows how financially healthy the company is. Why is credit card reconciliation important? Typically, the financial process occurs monthly, quarterly, or yearly for larger closing exercises. If parts of the ledger do not match what’s on the credit card statement, there will be discrepancies and the financial controller needs to find out what are its causes. And if all payments in the ledger match with those on the statement then the ledger could be considered accurate. To put it simply, accountants will compare the credit card statements of the company against the general ledger. One common task that your finance teams have to handle every month even if they don’t like it is reconciling credit cards.Ĭredit card reconciliation is the system that accountants would use to make sure all the transactions in a credit card statement will match those on the book of the company. Therefore, good accounting is not only a crucial factor for a growing business but it’s also a legal requirement that any business should know and follow carefully. Reconcile Credit Cards in QuickBooks What is credit card reconciliation?Įvery successful company needs a clean book to survive and thrive in the long term.