Formats and workflows

Bookkeeping cleanup checklist for bank statements

A practical bookkeeping cleanup checklist: collect every statement, set the opening balance, import without overlap, reconcile, clear duplicates, keep records.

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  1. 1. Collect every statement for the period
  2. 2. Set the opening balance
  3. 3. Import without overlap
  4. 4. Reconcile each statement
  5. 5. Clear duplicates
  6. 6. Keep the records
  7. Where StatementLoom fits
  8. Sources

A bookkeeping cleanup brings an account's records back in line with the bank. Collect every statement for the period, set the opening balance, import the transactions without overlap, reconcile each statement to a difference of zero, clear duplicates and keep the records. Where a bank only gives you PDF statements for older months, convert them to QBO with a free account, or to CSV or Xero CSV with the free bank statement converter.

1. Collect every statement for the period

  • List every account. Bank reconciliation applies to checking, savings, credit card and payment processor accounts (Xero (opens in a new tab)).
  • Check how far back each bank goes. Online statement windows differ by bank, as the examples below show.
  • Download transaction files where the bank offers them. Where downloads don't reach back far enough, work from the PDF statements.

Examples of statement windows, as each bank's help pages describe them:

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2. Set the opening balance

  • QuickBooks Online: start at a statement. The opening balance summarises all older transactions up to that point, and Intuit recommends setting it at the beginning of a bank statement to make the first reconciliation much easier (Intuit (opens in a new tab)).
  • QuickBooks Online: suspect it first. When a first reconciliation shows the wrong balance, Intuit says it's often due to an incorrect opening balance (Intuit (opens in a new tab)).
  • Xero: use the closing statement before conversion. Enter the closing balance from the day before your conversion date; if you start on 1 April, use the closing balance from 31 March (Xero Central (opens in a new tab)).

3. Import without overlap

  • Start each file after the newest transaction already in the books. Intuit lists importing a file that overlaps the bank feed, reconnecting an account, and adding a downloaded transaction instead of matching it as causes of duplicates (Intuit (opens in a new tab)).
  • Know what reconnecting does. Intuit says disconnecting and reconnecting an account makes QuickBooks download past transactions again, which creates more duplicates.
  • Watch manual imports next to a bank feed in Xero. Duplicate statement lines can occur when a statement is imported manually and also arrives through a bank feed (Xero Central (opens in a new tab)).
  • Back up before importing into QuickBooks Desktop. An import cannot be undone (Intuit (opens in a new tab)).

4. Reconcile each statement

  • Start where the last reconciliation ended. In QuickBooks Online, the current statement should start the day after the Last statement ending date (Intuit (opens in a new tab)).
  • Enter the statement's figures. Use the Ending balance and Ending date from the statement, then match transactions until the Difference is $0.00.
  • Ask before accepting a difference. QuickBooks can finish with a difference by creating an adjusting journal entry, but Intuit says to talk to your accountant first.
  • Check each beginning balance. It should match the ending balance of your last reconciliation, or QuickBooks won't let you continue (Intuit (opens in a new tab)).
  • In Xero, compare the two balances. After reconciling, the statement balance in Xero and the balance in Xero should be the same (Xero Central (opens in a new tab)).

More detail: bank statement reconciliation.

5. Clear duplicates

  • QuickBooks Online: exclude, don't delete. Once a downloaded transaction is added or excluded, the bank won't download it again; a deleted one downloads again (Intuit (opens in a new tab)).
  • Xero: delete a statement imported twice. Delete Entire Statement removes it, and deleted statements can't be restored (Xero Central (opens in a new tab)).

The QuickBooks duplicate transactions guide covers the fixes in more detail.

6. Keep the records

  • US: keep records for the period of limitations. The IRS says to keep records that support items on a tax return until the period of limitations for that return runs out (IRS (opens in a new tab)). That is generally 3 years, 6 years if you don't report income that is more than 25% of the gross income on your return, and 7 years for a claim for a loss from worthless securities or a bad debt deduction.
  • US: keep employment tax records longer. At least 4 years after the date the tax becomes due or is paid, whichever is later.
  • Check other obligations before discarding. Insurers or creditors may require you to keep records longer than the IRS does.
  • Keep the statements themselves. The IRS lists account statements and credit card statements among the documents for expenses (IRS (opens in a new tab)).

Where StatementLoom fits

StatementLoom reads text PDF bank and credit card statements, not scans, and turns them into QBO, QFX, OFX, Excel, CSV or Xero CSV files. It checks that the opening balance plus every transaction equals the closing balance before any export, and warns when two statements for the same account overlap. In QBO, QFX and OFX files each transaction gets a fixed ID (FITID), so exporting the same statement again gives the same IDs. QuickBooks or Xero still decides what it imports.

Sources

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Frequently asked questions

Where should the opening balance start in QuickBooks Online?

Intuit recommends setting the opening balance at the beginning of a bank statement, which makes the first reconciliation much easier.

How do I avoid duplicate transactions when importing old statements?

Import files that start after the newest transaction already in QuickBooks, and don't import a file that overlaps your bank feed.

When is a statement reconciled in QuickBooks Online?

When the Difference shows $0.00 after you match the transactions against the statement's ending balance and date.

How long should US businesses keep records?

The IRS says generally 3 years, with longer periods in some cases, such as 6 years if unreported income is more than 25% of the gross income on your return, and at least 4 years for employment tax records.

Convert a PDF statement for free

Upload a text PDF bank or credit-card statement and see whether its transactions add up to its own balances before you download Excel or CSV. Up to 10 pages a day, no account needed.

Open the free converter Create a free account