QuickBooks Reconciliation Services: Bank & Credit Card (QBO)

If your month-end stalls at “Difference: $X.XX”, this guide is for you. Professional QuickBooks reconciliation means $0.00 tie-outs on bank and credit card accounts—every month—with evidence, SLAs, and clear escalation paths. Below is the standard Omniga uses (and recommends): QBO menu paths, controller-grade tie-outs, and an inline checklist you can run right now. For broader context, see our outsourced bookkeeping solutions.

Scope & Disclaimer
Omniga provides controller-grade bookkeeping/reconciliation services. We do not provide audit, review, or compilation services (non-attest). GAAP presentation topics (e.g., restricted cash) are handled in coordination with your external CPA.

Introduction to Account Reconciliation

Reconciliation compares your ledger to external statements so every transaction is matched, dated, and supported. Done monthly, it prevents silent drift, accelerates close, and surfaces risk while it’s still cheap to fix. AICPA guidance recommends risk-ranking accounts and standardizing reconciliations monthly to catch discrepancies early.

What “Good” Reconciliation Looks Like

Zero-Difference Tie-Out + Evidence

Goal: $0.00 variance per account, per month.
Evidence pack: (1) Statement PDF(s) (bank/CC), (2) QBO Reconciliation Report, (3) Unresolved Items list (if any), (4) Reviewer sign-off.
Retention: Central storage (Drive/Dropbox/SharePoint). Naming: YYYY-MM_[Entity]_[AccountName]_Reconciliation. Saving reconciliation PDFs simplifies future review and exception tracing.

Additional perspective on strengthening reconciliation accuracy and internal controls can be found in Oracle NetSuite’s overview of account reconciliation best practices

Beginning Balance Integrity & Audit Trail

QBO: Reports → Reconciliation Reports (filter account/date).
Confirm Beginning Balance = last Ending Balance. If not, trace changes via ⚙ → Audit Log and Reconciliation Discrepancy report. Keep a short Exception Log (who/what/when/why). “Proof-of-cash” style checks reconcile both ending balance and period activity, speeding discrepancy isolation.

Additional guidance on audit trails and internal controls is available from COSO’s Internal Control Framework Hub Page

Timeliness SLA

Close calendar: Day 0 = statement available → Due in 5–7 business days (3–5 once stable). Faster cycles = fewer compounding errors and a tighter month-end.

SLA Dependencies
SLAs begin upon receipt of statement PDFs, required bank/processor access, and timely client responses. If third-party corrections or client dependencies delay resolution, Omniga documents status, owner, and ETA.

Scope of a Professional QBO Reconciliation Service

Bank, Credit Cards, Petty Cash

• Bank: deposits, withdrawals, fees, interest, transfers.
• Credit cards: purchases, payments, credits, finance charges.
• Petty cash: treat as an account with receipts + periodic top-ups; reconcile monthly.

Card Processors & Payouts (Stripe/Shopify/PayPal)

Map gross → fees → chargebacks → net payout; record timing differences. Use clearing accounts for batched settlements or split-day deposits. Confirm daily processor reports roll to monthly statements and deposit totals. See our cloud bookkeeping guide.

Off-Cycle “Mini-Recs” for Prior-Period Changes

If a closed period shifts (late bank feed changes, back-dated JEs), run a targeted mini-rec, document the fix, and re-lock the period.

Enter Transactions (Foundation)

Reconciliations are only as clean as source entries. Keep transactions current (sales, fees, interest, charges). In QBO, ensure sales → deposits and bills → payments are linked cleanly so bank-feed matching works and Undeposited Funds doesn’t accumulate.

The Playbook for Common Issues

Duplicates from Bank Feeds

Symptoms: same transaction added from feed and recorded via invoice/bill/JE.
Fix:

1. Banking → For Review: find dupes.
2. Undo/Exclude mistaken auto-adds; disable Auto-add rules during cleanup (Banking → Rules).
3. Re-match to the source (Receive Payment, Make Deposit, Bill Payment).
4. If a dupe posted to the GL, reverse and re-reconcile.

For more on QBO bank feed cleanup workflows, see this video and trasncript on Intuit’s Firm of the Future bank feeds guide

Stale Entries

Focus on outstanding checks/deposits >30–60 days.
Decision tree: void/reissue if lost; apply/clear if matched elsewhere; escalate on customer/vendor disputes. Add a recurring stale-item review to your month-end checklist.

Statement Mismatches & Undeposited Funds

Verify statement ending balance before you start. If Beginning Balance is off, trace via Reconciliation Reports + Audit Log. Check Undeposited Funds for items that should be in + New → Bank Deposit; this frequently causes off-by-payout variances.

Credit Card Specifics

Confirm main vs. employee card feed structure. Record finance charges/interest monthly. If issuer settlements span days (weekend batching), route through a clearing account.

Reconciliation Service Features

• Automated matching to reduce manual effort and error risk.
• Exception-first workflow (flag, assign, due date, clear).
• Evidence & reporting: standardized packs, unresolved-item logs, trend views.
• Integrations: bank/processor feeds + QBO Accountant tools.
• Quiet AI™ assist: proposals for matches/clears that still require approval. See AI bookkeeping automation.

Multi-Entity & Intercompany Edge Cases

Intercompany Transfers

Mirror entries (same date/amount) in both entities; include month-end confirmations (bank screenshots) in the evidence pack. For multi-currency, document FX rate and remeasurement policy.

Restricted Cash

Identify processor holds/escrows/reserves as restricted. Track separately and document the restriction’s nature. Controllers consider presentation & disclosure under ASC 230 / ASU 2016-18 (restricted cash).

Inline Checklist: Monthly Quality Standard (No Download)

• ✓ Prior period locked; Beginning = last Ending.
• ✓ Statement PDF imported; ending balance & period confirmed.
• ✓ Match all transactions to source (sales→deposits; bills→payments; explicit fees/interest).
• ✓ Investigate differences; assign owner + due date; document status.
• ✓ Achieve $0.00 variance; run Reconciliation Report.
• ✓ Save evidence pack (statement, Recon Report, unresolved items).
• ✓ Reviewer sign-off; apply Close the books with password.
• ✓ Roll-forward open items to next month’s first pass.

Red flags / thresholds:

• Variance > $25 or stale items > 30 days → escalate.
• Beginning Balance off and not traced in 1 business day → escalate.

Sample SLA (Inline)

Frequency: Monthly; target window 5–7 business days of receipt of statements/access.
Accuracy: $0.00 variance standard; exceptions documented with owner + ETA.
Evidence: Statement(s), Reconciliation Report, unresolved items list.
Controls: Segregation of duties (preparer vs. reviewer), reviewer approval, period lock.
Exceptions: Logged within 1 business day; commercially reasonable efforts to remediate within ~5 business days.

For planning & budgeting, see Bookkeeping Services Pricing (2025).

When to Escalate to a Controller

• Beginning balance breaks that aren’t traced within 1 day.
• Complex payouts/chargebacks (multi-currency, reserves, rolling holds) or restricted cash presentation.
• Recurring stale items or suspected control failures (missing approvals, inconsistent access).

How Reconciliation Fits the Month-End Close

Bank/credit card reconciliations gate draft financials. Once all cash/CC accounts are at $0.00 with evidence + lock, proceed to accruals, revenue cut-off, and analytics review. Controller-reviewed reconciliations reduce audit time, speed lender packages, and prevent cumulative error. For first-time setups, see Bookkeeping for Startups.

Table: Bank vs Credit Card Reconciliation Nuances

Edge-Case Matrix (Trigger → Action → Owner → Escalation)

• Bank-feed duplicate → Undo/exclude, re-match to source → Preparer → Controller if systemic (rules).
• Stale item >30 days → Void/reissue/apply w/ docs → Preparer → Controller if >60 days or dispute.
• Beginning balance off → Trace via Recon Reports + Audit Log → Preparer → Controller if not resolved in 1 day.
• Processor hold/restricted cash → Document + map presentation → Preparer → Controller for disclosure call.

QBO Menu Paths You’ll Use Often

• Lock the books: ⚙ → Accounts and Settings → Advanced → Close the books (password)
• Reconciliation Reports: Reports → Reconciliation Reports
• Undo auto-adds / fix rules: Banking → Rules (toggle Auto-add off during cleanup)
• Audit Log: ⚙ → Audit Log
• Reclassify (Accountant): Accountant Tools → Reclassify Transactions
• Undeposited Funds: + New → Bank Deposit (review items awaiting deposit)

Related Reading

• Outsourced & Virtual Bookkeeping Services
• AI Bookkeeping Automation
• Cloud Bookkeeping Services
• Outsourced vs In-House Bookkeeping
• Small Business Bookkeeping Software (2025)
• Best QuickBooks Integrations

Why Omniga

Omniga pairs controller-grade standards with Quiet AI™—AI proposes, humans approve. We deliver $0.00 monthly tie-outs, maintain a durable evidence pack, and lock periods on schedule. When edge cases arise (payout splits, reserves, intercompany, restricted cash), we escalate to controller review without breaking cadence. Outsourcing lets your team focus on higher-value work.

Start with a Reconciliation Health Check. We’ll assess current state, outline fixes, and set SLAs for the next close.

Frequently Asked Questions

What does “$0.00 variance” actually mean?

It means the QuickBooks Online (QBO) reconciliation shows a difference of $0.00 between the statement ending balance and the cleared items in QBO for that period. If external dependencies (bank/processor corrections, missing statements) delay resolution, we document the exception, owner, and ETA and close once resolved.

What’s included in the monthly evidence pack?

(1) Statement PDF(s) for each reconciled account, (2) the QBO Reconciliation Report, (3) an unresolved items/exception log (if any) with owner and ETA, and (4) reviewer sign-off—stored centrally using YYYY-MM_[Entity]_[Account]_Reconciliation.

What’s the SLA for month-end reconciliation?

Target window of 5–7 business days from receipt of statements and required access (often 3–5 days once stable). Exceptions and blockers are logged within one business day with a remediation ETA.

Do you fix bank-feed duplicates and Undeposited Funds issues?

Yes. We undo/exclude mistaken auto-adds, re-match to source transactions (Receive Payment, Make Deposit, Bill Payment), and clear Undeposited Funds via proper Bank Deposits. We also harden bank rules to prevent repeats.

How do you handle Stripe/Shopify/PayPal payouts?

We map gross → fees → chargebacks → net, reconcile timing differences, and use clearing accounts for batched or split settlements. We confirm that daily detail rolls up to monthly statements and bank deposits.

Can you support multi-entity, intercompany, and multi-currency?

Yes. We mirror intercompany entries (same date/amount), include month-end confirmations, and coordinate FX remeasurement policy. Complex structures may be scoped as a controller add-on.

Do you address restricted cash and processor holds?

Yes. We identify and track restricted balances and advise on GAAP presentation in coordination with your external CPA (ASC 230 / ASU 2016-18). The nature of the restriction is documented in your evidence pack.

Who actually does the work—AI or humans?

Quiet AI™ proposes matches; humans approve. A preparer completes the reconciliation, and a controller-grade reviewer signs off and locks the period in QBO.

Is this an audit or assurance engagement?

No. This is controller-grade bookkeeping/reconciliation (non-attest). We do not provide audit, review, or compilation services.

What do you need from us to start?

Statement PDFs (or portal access), QBO Accountant access, bank/processor portal access (view/download), and a point-of-contact for exceptions. We’ll also align on your close calendar and naming conventions.

How far back can you reconcile and clean up?

As far as needed. We typically scope historical cleanups separately from monthly service so the current close stays on schedule while backlog is resolved in parallel.

How is pricing structured?

Monthly service is priced by account count and complexity, with controller add-ons (multi-entity, FX, restricted cash) as needed. Historical cleanup is quoted separately.

What signals completion each month?

$0.00 variance per account, evidence pack saved, reviewer sign-off, and a QBO period lock. Any open items are documented with owner and ETA and rolled forward to next month’s first pass.

External References (for your team's playbook)

• Intuit Reconciliation Topic Center — https://quickbooks.intuit.com/learn-support/en-us/quickbooks-online/help-topic/banking/reconciliation
• AICPA / Journal of Accountancy — Account Reconciliation Best Practices — https://www.journalofaccountancy.com/issues/2016/feb/reconciliation-best-practices/
• WA State Auditor — Best Practices for Bank Reconciliations — https://sao.wa.gov/sites/default/files/2023-05/Best-Practices-for-Bank-Reconciliations.pdf
• FASB ASU 2016-18 / ASC 230 — Restricted Cash — https://www.fasb.org/page/ShowPdf?path=ASU_2016-18.pdf&title=ACCOUNTING%20STANDARDS%20UPDATE%202016-18—STATEMENT%20OF%20CASH%20FLOWS%20(TOPIC%20230):%20RESTRICTED%20CASH