Question

Your company wishes to verify the accuracy of the accounting records concerning its cash accounts. How would you use QuickBooks to accomplish this?

Answer 1

company can verify the accuracy of cash accounts in QuickBooks using reconcile option:

steps in reconciliation process:

1. Navigate to the Reconcile Menu:

From the home screen, click on the Gear Menu and beneath the column heading “Tools,” select the Reconcile tab.

2. Choose the Account:

On the Reconcile overlay, choose the account you want to reconcile from the drop-down menu options.

  Once you’ve selected your account, click Reconcile Now.

3. Enter Statement Details:

Now take a look at a copy of the bank statement for the account you’re reconciling with QuickBooks. Take note of the Statement End Date and the Ending Balance amount. Back in QuickBooks, you’ll see the Reconcile overlay. Enter your Statement End Date into the calendar drop-down menu. Next, enter your statement’s Ending Balance on the Reconcile overlay and click OK when you’re done.

4. Match Expenses:

Now the real work begins. Take another look at the transaction history on your bank statement.

In the Reconcile window, match each transaction from your bank statement with an item in the list, checking the box to the right of each transaction to match.Important safety tip: only click on the little checkbox. If you click any place else, other windows will open and it can be hard to find your way back to the Reconcile window.

5. Finish Reconciliation:

When you’ve gotten the Difference value at the bottom to zero, click Finish Now.

6. Examine Reconciliation Report:

Now, back in the main Reconcile menu, you’ll see the reconciliation you just entered. Click on it to open a detail window for review. Click Run Report to open a detailed report of your reconciliation. You can Print your reconciliation report here in the report window.