Reconciliation is an essential accounting process. When you perform a business-related transaction, you’ll need to record it. You’ll then need to cross-reference the transaction — as well as other transactions during the same period — against your bank account records. Known as reconciliation, it allows you to verify the accuracy of your business’s financial records. In Quickbooks, Online, you can either match or add transactions for a smoother and more effective reconciliation process. What’s the difference between matching and adding a transaction exactly?
What is Matching a Transaction?
Matching a transaction means checking the transaction to see if it matches the record in your bank account. It’s called matching because you are matching a transaction with a bank record. Ideally, of course, they should match. There are instances, however, in which a transaction may have a matching bank record.
To match a transaction, pull it up in your Quickbooks account and click it so that the transaction expands. In the “Records found” section, you’ll see a link next to the transaction’s records. Clicking these links will pull up more information about the respective record. You can then look at the “Deposit to” to verify it entered your bank. Clicking the “Match” button to close this feature.
What Is Adding a Transaction?
Adding a transaction means Quickbooks will create a new transaction because it didn’t find a match. If there’s no match for a transaction, you’ll need to create a new transaction. The transactions in your Quickbooks account must match those in your business’s bank account. That’s the basics of accounting 101. When you discover a bank record that doesn’t match a transaction in your Quickbooks account, you’ll need to add a new transaction.
To add a transaction, open the transaction up and check the recommended account category. After selecting your desired category, enter the payee and click “Add.” Before proceeding, make sure all the information is correct. Quickbooks will then add the transaction to your account. You can then complete the transaction by clicking the confirmation button.
Accounting errors can occur when running a business. By reconciling, however, you can identify and fix them so that they don’t harm your business’s operations. Quickbooks supports matching transactions, which involves checking to ensure a transaction matches a bank record. If the transaction doesn’t match up, you can also create a new transaction by adding it to your account.
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