17 Nov Catch Up Bank Reconciliation
Ask the Expert – “Catch Up” Bank Reconciliation
Q – What is the best way to solve a problem that checking account beginning balance on QuickBooks doesn”t agree with the beginning balance of the bank statement? This is because the client has been using other software to do bank reconciliations.
A – Assuming that the check book balance has been adjusted as each bank reconciliation was completed so QuickBooks matches the other software; the fix is not too difficult. Below are the steps for the first reconciliation then any subsequent bank recs will follow the normal procedures.
1. Confirm the adjusted balance on QuickBooks agrees with the bank reconciliation prepared on the other software.
2. Choose the reconciliation option in QuickBooks and enter the ending bank statement balance. Ignore the opening balance for this one reconciliation.
3. Click the box to mark all.
4. Manually remove the check marks by clicking on them for any transactions that have not yet cleared. These will usually be an outstanding check or deposit in transit on the bank reconciliation as well as any new transactions since the reconciliation date.
5. Confirm the difference is zero and complete the reconciliation process.