How to Work With Bank Accounts in QuickBooks

QuickBooks is software designed by the Intuit Company that allows a business to keep all financial records in one place. The QuickBooks program provides the opportunity to synchronize your bank accounts with the records on your computer. This is an advantage when organizing and tracking various entries. In order to maintain a proper balance on your bank accounts, it's necessary to examine ledgers, make entries for payments and do end-of-month reconciling. The process of managing your bank accounts through QuickBooks can seem overwhelming, but the steps are straightforward for anyone with a basic understanding of QuickBooks' operation.

Instructions

View Accounts

1. Open QuickBooks on your computer.

2. Select "Chart of Accounts" from the "Lists" menu at the top of the screen. This will open a list of your bank accounts.

3. Double-click on the account that you wish to view.

Record Checks

1. Navigate to the "Banking" menu located on the top of the screen.

2. Select "Use Register" from the list of options in the "Banking" menu.

3. Click on "OK" to accept your checking account register.

4. Move your pointer to the "Number" field in the blank transaction screen. QuickBooks will automatically fill in the next check number in the series. If this is incorrect, highlight the number and type in the correct one.

5. Use your tab key to move down to the "Payee" field and type in the company that received your check. For instance, if you paid the electric bill, you would type in the name of the electric company.

6. Continue using the tab key to move down the form and fill in the information, such as amount paid, account expensed and memo.

7. Click on the "Record" key to finalize the entry.

Transfer Money between Accounts

1. Select "Transfer Funds" from the "Banking" menu at the top of the screen.

2. Use your tab key to navigate to the "Transfer Funds From" field. Click on the arrow and select the appropriate account.

3. Move the pointer down to the "Transfer To" field, click on the arrow and select the correct account.

4. Click on the "Transfer Amount" field and enter the total of your transfer.

5. Mark the "Online Funds Transfer" box if you moved money via an online service.

6. Click on the "Save & Close" button to complete the transaction.

Reconcile Accounts

1. Place your bank statement in front of you for reference.

2. Open "Reconcile" from the banking menu at the top of the screen.

3. Click on the arrow in the "Account" field and select the appropriate account.

4. Adjust the statement date if necessary by clicking on the square next to the text box for "Statement Date." Use the pop-up calendar to correct the date.

5. Use your tab key to move to the "Ending Balance" box and enter the ending balance of your account from your paper statement. The beginning balance will be the ending balance from the previous month and should match the beginning balance on your paper statement.

6. Move down to the "Service Charge" field and enter any bank changes accumulated for the month. Enter the date of the charge in the next field.

7. Click on "Continue" to move to the next screen.

8. Go through and compare the paper statement to the line items that appear on the screen. Highlight and click each one that was processed.

9. Click on the "Reconcile Now" button after marking each line item. Compare the ending balance with the balance on your statement. If all entries are correct, the two numbers should match. Print out any reports needed on the "Reconciliation Report" screen.

Resources

• Accounting Web: QuickBooks 2009 Working with Bank Accounts