You may have noticed that when you view your chart of accounts, there is a column for “QuickBooks Balance” and one for “Bank Balance”, and they don’t match. That does not necessarily mean that your QuickBooks balance is incorrect.

QuickBooks (QB) registers records, checks, and deposits as soon as they are entered, whereas the bank balance is only affected when the check or deposit actually clears the bank. These are often checks that have been written in QB that haven’t cleared the bank (outstanding checks), or deposits that have been recorded in QB that haven’t cleared the bank (deposits in transit).

The only way to verify that your QB balance is correct is to do a “Bank Reconciliation” in QuickBooks. For more information on how to perform a Bank Reconciliation or to get help with your Bank Reconciliation, feel free to contact our QBO Bookkeeper!