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Before you start

1. Get the bank statement for the month you’re reconciling (PDF or paper).
2. Confirm you’re reconciling the correct bank account in QBO (e.g., “TD Chequing” vs “TD Savings”).
3. Make sure you’ve entered or imported all activity up to the statement end date:
   • Bank feed transactions have been Added/Matched (not left “For Review”), and/or
   • Any missing cheques, transfers, or fees are entered.

Step-by-step: How to reconcile in QBO

1) Open the Reconcile screen

1. Go to Accounting in the left menu.
2. Select Reconcile.
3. Choose the bank account you want to reconcile.

2) Enter the statement information (this is the critical part)

You will see fields for Ending balance and Ending date (and sometimes a starting balance that QBO fills in).

4. Ending date: Enter the statement end date (the last day on the statement period).
5. Ending balance: Enter the statement ending balance exactly as shown on the statement.
   • Use the balance labelled “Ending balance” / “Closing balance” on the statement.
   • Do not enter:
     • the “available balance”
     • today’s balance from online banking
     • the month’s total deposits/withdrawals
     • the opening balance
   • Enter it exactly, including the sign (almost always positive for a chequing account, unless the account is overdrawn).
6. If your statement shows a different format (rare, but it happens):
   • If it shows “Balance forward” at the end, treat that as the ending balance.
   • If it shows multiple balances, use the one tied to the statement end date.
7. Click Start reconciling.

3) Tick off transactions that cleared the bank

You’ll now see QBO lists of transactions (usually separated into money out and money in).

8. Using the statement, go line-by-line and check off each transaction in QBO that appears on the statement:
   • Match date (allow small timing differences), amount, and payee/description.
   • If the statement shows a transaction but QBO doesn’t:
     • Stop and add it (common ones: monthly bank fee, interest, NSF fee, cheques, transfers).
   • If QBO shows a transaction but it’s not on the statement:
     • Do not check it—it hasn’t cleared yet. Leave it for next month.

4) Watch the “Difference” amount

9. As you check items, QBO updates the Difference (or “Remaining”) amount.
10. Your goal is Difference = $0.00.

5) Finish the reconciliation

11. When the difference is $0.00, click Finish now (or Done).

If the difference is not zero (most common fixes)

Use this order—fastest to slowest:

1. Ending balance entered wrong
   • Re-check the statement ending balance and make sure you didn’t use “available” or “current” balance.
2. A transaction amount is entered incorrectly in QBO
   • Compare the statement amount to QBO. Even a $10.00 vs $100.00 error will throw it off.
3. A transaction is duplicated
   • You might have one from bank feed plus one manually entered.
4. A transaction is dated in the wrong period
   • Some items clear a few days later. If it’s not on the statement, leave it unchecked.
5. Beginning balance issue
   • If QBO says the beginning balance changed, don’t force it. It usually means something old was edited/deleted. You’ll need to find what changed (often by reviewing prior reconciliations or the reconciliation history).

What NOT to do

• Do not use “Reconcile by adding an adjustment” unless you have explicit instruction to do so. Adjustments hide the real problem and create messy books.
• Do not guess the ending balance or use online banking’s current balance.

Good habits (makes next month easy)

• Reconcile monthly, right after the statement arrives.
• Enter bank charges/interest monthly if the bank feed didn’t capture them.
• Avoid editing previously reconciled transactions unless you understand the impact.