QuickBooks Online Bank Reconciliation, Proving Correctness

What Is Bank Reconciliation? This QuickBooks Instructional training video will explain exactly what the bank reconciliation process is and what it does for you and your company. The bank reconciliation feature is a self-checking tool that allow you to find and fix any QuickBooks mistake you may have made during the month when entering bank transactions. Even recording credit card transactions can be cleaned up with credit card reconciliation because it is the exact same process of reconciling the bank account in both QuickBooks desktop and reconciling in QuickBooks online. It does not fix everything but, it is a job skill that will always help you and the ideas, principles and concepts of doing a bank reconciliation will be explained here. It is the first in the series of bank rec QuickBooks videos classes that will make you an expert in QuickBooks and Q.B.O. The bank rec process will show prove that MOST of your QuickBooks online records and financial transactions are correct to the last detail. This QuickBooks video will show what specifically is proved correct and how it does it. The principals apply to any company anywhere even if you are not using your computer for account and financial record keeping.

What is the cleared balance when doing bank reconciliation in QuickBooks desktop or QuickBooks online? It is the balance of all your QuickBooks bank transactions that you have marked as cleared in your QuickBooks records. The bank reconciliation process only compared the cleared balance, the balance of the ones’ you check marked as cleared in the bank reconciliation window, will be compared to the statement balance. It’s normal to have uncleared transactions in QuickBooks that are not yet on the bank statement. They will usually clear in a following month. That’s why you only compare the cleared balance to the statement balance. This video shows how that relates to your bank reconciliation clean up process.

In This QuickBooks Online Video lesson, you will be introduced to all the steps necessary to complete the very first month’s bank reconciliation in a company that started using the bank account about the same time that QuickBooks Online account had been created and started up. You will see how to navigate the reconciliation window in QuickBooks online. You will experience each part of the first bank rec step by step. You will see how to pass the first window that asks for monthly service charge and interest if it is listed separately. You will mark each transaction as cleared and see the difference between the QuickBooks online bank account cleared balance and the bank statement ending balance become zero. Then you will have done your first successful bank reconciliation. You will then see the 2 bank reconciliation reports that QuickBooks online makes after each bank reconciliation. There are both summary and detail reports.

In This QuickBooks Online Video lesson, you will learn how to access and understand bank reconciliation reports.

In This QuickBooks Online Video lesson, you will be experiencing the second consecutive month doing bank reconciliation in QuickBooks online. The important things to notice are that the ending statement balance of last month will be the beginning statement balance of this month. The other important thing about the next month’s bank rec is that any outstanding checks from last month’s bank rec should show on this month’s statement as cleared. Therefore, you will mark them clear during this second month of bank reconciliation. The same is true for any deposits in transit from last month that cleared this month’s bank reconciliation.

In This QuickBooks Online Video training tutorial, you will learn about and use the QuickBooks Online Bank Reconciliation discrepancy report. This report will show every change to any transaction that has already been cleared and reconciled in a prior month’s bank reconciliation. You will know that there has been a change to a past transaction if the reconciliation window shows a beginning balance different from the statement beginning balance. You cannot reconcile this current month if the beginning balances do not match. If this happens, you will have to use the reconciliation discrepancy report to identify all the changes that have been made to cleared transactions since the last bank reconciliation was done. This report will show you everything that has been added, edited or removed from the cleared balance. It will give you the ability to undo and fix all of these changes right from the report window. Then you can go and reconcile normally.

In This QuickBooks Online Video class, you will learn and experience all the common bank reconciliation mistakes that someone could make when doing bank reconciliation in QuickBooks online. You will practice finding and fixing all of he mistakes a bookkeeper could make during the month that would be caught with the bank rec process. Things like: duplicate transactions, missing transactions and transposed numbers are errors that bank reconciliation was designed to find and fix.

In This QuickBooks Online Video tutorial, you will learn when it is appropriate to adjust a bank reconciliation to make it fit and match. The only time it’s appropriate to adjust the bank rec is the first month you do bank reconciliation. That’s because sometimes it’s not possible to know the “book” balance or what the book balance would have been at the beginning because you did not start reconciling at the moment you started using the bank account in QuickBooks Online. In fact, it’s actually called a “beginning balance” adjustment for people to know that you should only adjust to make the beginning balance correct because you only found out what the beginning balance really was after several months of outstanding checks clearing the bank account. Sometimes, you can get away with adjusting the bank rec if the difference is immaterial; but you cannot make that judgement without consulting your accountant

In This QuickBooks Online Video tutorial, you will learn how to undo a bank reconciliation. Anybody can mess up or screw up a bank rec. If you do not match numbers with the cleared balance and statement balance and force an adjustment, then you must undo the reconciliation and try again. You can only undo a reconciliation if you are logged in as an accountant user or if you are already using the accountant’s edition of QuickBooks online. When you undo a reconciliation, it will only unclear any transaction marked as cleared and remove any adjustment that was made for that reconciliation.

First time reconciling your QuickBooks records? Never input a beginning bank balance? Been using the account for years? This is the most common issue and challenge with the very first month’s bank reconciliation. You did not know what the book balance was when you started reconciling. You knew the bank statement balance at the start and finish of the month, but if you never input a starting balance in your bank account, then you will not have your cleared balance equal to the bank statement balance. You must adjust your QuickBooks records to input what the beginning book balance was for the first month you are reconciling.

If you want accurate records in your QuickBooks bookkeeping, you need to know how to make financial books and records correct. There are several features in QuickBooks and in QuickBooks online that give you the ability to make your QuickBooks numbers accurate and make your financial record keeping balances correct to the last detail.

In This QuickBooks Online Training Video, You will learn the last part of proving all records are correct: Reclassifying expenses to the correct category. The is the only piece of data not verified by an independent source. You can run special reports or use the accountant’s toolbox with the “reclassify transaction” tool to put all expenses in to the proper expense account.

This Learn QuickBooks Online video training tutorial will show how to reconcile your customer records and customer reports with your client’s records to ensure accuracy. You must make sure that you agree with your customers regarding the individual customer transactions as well as the balance forward for every open invoice and the total balance itself. You must carefully check every transaction 1-by-1. If you have a difference, then you must call the customer or their bookkeeper and read off the transactions until you find the difference. The recommended report to read off to the client over the phone would be the transaction list by customer. Then either you or they can fix the QuickBooks online mistakes and make the data match.

This Learn QuickBooks Online video training tutorial will show how to find and fix customer’s misapplied payments. All the other mistakes in the customer records and on the customer reports can be fixed by reconciling with the customers the usual way. Comparing each transaction on the customer’s statements, one by one, will not help you find the misapplied payment. You must use what you learn in this QuickBooks instructional video to be able to find and fix this particular issue.

In this QuickBooks Online Training tutorial, you will learn how to reconcile your vendor and account’s payable records with the monthly vendor statements that you receive from vendors. To prove your vendor and accounts payable records are accurate, you must match the transactions on the vendor report with the monthly statement that you receive rom the vendor. The 2 vendor and accounts payable reports that you will use to compare transactions with are: the “unpaid bills” report and the “transaction list by vendor” report. If you carefully reconcile on the phone comparing 1-by-1 each transaction, you will be mostly correct. To get accurate payable records, you also must make sure you do not have a misapplied bill payment. The only way to determine this is to compare the unpaid bill amounts from the vendor’s statement to the unpaid bills report. Once you find the payment that was applied to the wrong bill, you can fix it by opening each bill payment and reapplying the vendor payment to the correct unpaid bill.