QBO Reconciliation Process

What is it?

As your customers are making payments, your payment processor is collecting those payments and will deposit a lump sum to you. The idea is to clear that account out when you receive the funds or “reconcile” it.

The deposit will go into the bank account that you have specified and can be reviewed under the “Banking” section of QuickBooks. This payment then needs to be reconciled with the invoices that have been marked as paid in QuickBooks, using the following process.

How do I do it?

Banking in the left menu > Pop out and click Banking again > if there are multiple bank accounts, find the account your payment processor is set to deposit into using the drop-down next to the account name

On the bottom half of the screen, ensure you are on the “For Review” tab, which will resemble the screenshot seen below. If you have received a payment deposit, you will see it as a line item in the account with the payment total in the “Received” field.

Click on the Payee name to open up the transaction > Add Wise-Pay Clearing Account in the Category field > Click Add

This will move the transaction from the “For Review” tab and into the “Categorized” tab.

Next, you will go to the left navigation menu > Accounting > Chart of Accounts > and find the Wise-Pay Clearing Account

To the right of the account name, click “view register” and it will show all of the payments made. When you applied the Deposit to this account, it brings that balance down in an attempt to get it to zero.

If it does not reach zero (which is very common), it is because you have invoices that have been paid, but you are still waiting on the money from your payment processor. Therefore, the balance of the Wise-Pay clearing account is the amount of money you are still owed.

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