How To Update and Reconcile a Cash Flow Account

Quicken needs to know more about the task that you want to complete. After you choose a task, Quicken displays more information following the list.

• To reconcile a banking, savings, or credit card account to a paper statement:
  1. Open the account you want to reconcile.
  2. Click Reconcile.
  3. In the Reconcile Online Account window, select Paper Statement.
  4. Using your statement, check the opening balance and enter the ending balance.
     • What is my opening and ending balance?
       • If this is the first time reconciling this account, the opening balance is taken from the ending balance of your previous statement. Otherwise, this number is the total of all the transactions you selected during the previous times you reconciled this account.
       • Check this number against your statement. Your bank may call this the beginning or previous balance. If you haven't reconciled in some time, the amounts may differ.
       • Correct the amount if it's incorrect. Quicken helps you adjust for this difference later.
       • Your statement might call the ending balance the new or current balance.
  5. Enter the amount, date, and category information, if there is a service charge or interest earned. (Optional)
     • Tell me more about entering service charges and interest
       • If your statement lists service charges, total them and enter the amount here. This makes Quicken enter a transaction for the service charge in the register. You can also enter a category for service charges and change the date.
       • If your statement lists interest earned by your account, enter the amount here. This makes Quicken enter a transaction for the interest in the register. You can also enter a category for the interest and change the date.
  6. Click OK.
  7. Check off the transactions in the window that also appear on your statement.
     • Why are some (or all) transactions already checked?
       If you've downloaded transactions recently, all the transactions from your statement should already be checked in the Reconcile window.
  8. Click Finished if the difference in the lower-right corner is zero.
     • What if I've previously reconciled to my online balance?

       Once you have reconciled your account to your online balance, you shouldn't switch to reconciling to a paper statement for a couple of reasons.

       • First, when you reconcile to your online balance, Quicken marks the transactions as reconciled with an R. If you switch to reconciling to a paper statement, those reconciled transactions will not reappear in the Reconcile window. It will seem that you are missing most of your transactions when, in fact, those transactions are already reconciled.
       • Also, in the Reconcile Online Account window, Quicken prefills your statement opening balance to the ending balance of the previous reconciliation. If you reconcile to an online balance and later reconcile to a paper statement, the opening balance shown in Quicken will disagree with the opening balance on your paper statement.
• To reconcile a banking, savings, or credit card account to an online balance

  When you use this method Quicken reconciles your Quicken account to the latest downloaded data, so make sure you download your latest transactions and accept the transactions into your register.

  1. Open the account you want to reconcile.
  2. Click Reconcile.
  3. In the Reconcile Online Account window, select Online Balance.
  4. Select Auto reconcile after compare to register. (Optional)
     • What happens now?

       Quicken automatically reconciles your transactions if they match transactions already in your register. If your account doesn't reconcile, Quicken displays the Reconcile window to help you find the problem.

  5. Click OK.
     • Why am I being prompted to download my data?

       If you haven't downloaded data in the past two days, Quicken asks you if you want to download the latest information.

  6. Click Finished, if the difference in the lower-right corner is zero.
• To match a cash account's balance to the cash on hand
  1. Open the account you want to use.
  2. Click Update Balance.
  3. Enter the amount of cash you have on hand as the cash balance.
  4. Enter the date.
  5. Enter a category for the adjustment transaction.
  6. Click OK.

You can create a reconciliation report at the time you finish reconciling an account, when Quicken prompts you, or at a later date.