How to Automate Reconciliation in QuickBooks Online with Bank Feeds 

Reconciliation in QuickBooks Online can be made much easier through automation using Bank Feeds. By connecting your bank account to QuickBooks Online, transactions can be imported automatically, saving you time and reducing manual errors. This method not only reduces manual work but also helps minimize errors. Here’s a step-by-step guide to automating reconciliation in QuickBooks Online and how it can help keep your finances in order.

Steps to Automate Reconciliation in QuickBooks Online with Bank Feeds

Step 1: Link Your Bank Account

• The first step in automating reconciliation in QuickBooks Online is to connect your bank account. Log in to your QuickBooks account, go to the Banking menu, and select “Connect Account.” To grant QuickBooks Online access to your bank, locate your bank on the list of approved institutions and follow the directions. 
• Your transactions will begin to automatically enter QuickBooks as soon as the connection is established. The secret to expediting your reconciliation process is this relationship.

Step 2: Enable Bank Feeds

• After connecting your bank, the next step is to enable Bank Feeds. In the Banking menu, select the account you just linked and click “Get Started.” You’ll also have the option to set up rules for your transactions. 
• For example, you can create rules based on the payee or transaction amount to automatically categorize certain types of transactions. This feature helps organize your transactions as they come in, making reconciliation in QuickBooks Online more efficient.

Step 3: Review Imported Transactions

• Once your bank is linked and Bank Feeds are active, QuickBooks Online will automatically pull in your transactions. You can find these in the Banking section under the “For Review” tab.  
• If a transaction matches something already in QuickBooks, you can click “Match” to pair them up. You can add the transaction as a new entry if it’s brand-new. Regularly reviewing these transactions will ensure that your financial records are accurate.

Step 4: Start Reconciliation

• To begin reconciling your account, go back to the Banking menu and click “Reconcile.” Choose the account you want to reconcile and enter the ending balance and date from your bank statement. QuickBooks Online will then show a list of the transactions it has recorded, and your job is to match these with those on your bank statement. 
• Use the “Match” or “Add” options to align the transactions. Once all transactions are accounted for, you can complete the reconciliation by confirming that your ending balance matches the bank statement.

Step 5: Regularly Maintain Your Bank Feeds

• It’s important to review your bank feeds regularly to make sure everything is in order. While QuickBooks Online automates much of the work, it’s still a good idea to check the categorization and reconcile your accounts monthly. This helps keep your financial records correct and current.

Conclusion

Automating reconciliation in QuickBooks Online using Bank Feeds helps simplify your accounting processes and ensures accuracy in your financial records. Meru Accounting, helps businesses utilize tools like QuickBooks Online to save time and minimize errors. By connecting your bank accounts, setting up rules, and regularly reviewing transactions, you can ensure a seamless financial workflow while focusing on growing your business.