Bank Reconciliation Month 2 Checks and Account Decreases 9145 QuickBooks Online 2022

QuickBooks Online 2022 bank reconciliation month number two checks and account decreases. Get ready because it’s go time with QuickBooks Online 2022. Here we are in our gig rake guitars practice file that we set up with a 30 day free trial holding down control scrolling up a bit to get to the one to 5% currently in the homepage, otherwise known as they get things done page.


Change to the accounting view, it’s something you can do by going to the cog up top switch to the accounting view down below, we will be toggling back and forth between the two views either here or by jumping over to the sample company file currently in the accounting view,



jumping back to the get great guitars opening up a couple of reports that we’re going to put or tabs that we’re going to report reports in by right clicking on the tab up top and duplicating that tab,



back to the tab to the left, right clicking on it again, duplicating it again, as those items are thinking, let’s see where the reports are located. Like in the accounting view Jumping over to the sample company. They’re right there, that’s where the home of the reports are and the accounting view. But in the business view, in the second tab, the home was moved due to due to intimate domain,



something I don’t know went into the business overview here is I’m going to close up the hamburger, we’re going to open up the balance sheet report, let’s go into the big balance sheet range change up top from a one a one to 2202 28 two to run at. And then I’m going to go to the income statement.



Back down to the business Overview Report reports close it up the hamburger let’s open up the P to the L the profit and the loss income and statement range change a 1012 to 202 2828 to two and I’m going to then change that to the months this time. So we could see the side buy stock and then run it.



And so now we’ve got Jan Feb tote, Jan Feb tote, and we’re focusing in on the Fed. But here we’re going to the balance sheet again. And we’re doing the reconciliation for month two.



So we have the end date February 28. Reconciling our balance currently in the cash account here, of course, to what is on the bank statement, we started the reconciliation last time. So we will presume to resume this time by going to the tab to the left.



And we’re going to go down to the bookkeeping area. If you were in the accounting view, by the way, it would be in the Accounting tab down below Accounting tab and then reconcile up top.



And so here it’s in the reconcile, I’m going to close the Hamburg and we’re going to resume resuming the process. I had my coffee, a little bit of lunch. And now I’m going to resume my reconciliation. You’ll recall last time we’ve got the ending statement balance ending statement balance 1015 9005



We’ve got then the beginning balance ties out no beginning balance problem because we’re in a month 261 241 85 Looks great movie b to the n b to the n bn minus zero payments. And so there we have the the deposits that we put in place 51 781 20.



That ties out right, doesn’t it? Let’s go back on over where am i right there. We’ve got the 51 981 20. Let’s make that I’m jumping in from the future to let you know that if you’re sitting there thinking,



Hey, that’s not the same number that we just looked at you are correct, it’s going to be something that we’re going to fix towards the end of the bank reconciliation process. So if you want to see what the difference is now, or what the problem is, we ticked off the wrong amount down below taking off the 200 instead of the 400 that was coming from the prior presentation tying out to this 400



We clicked the wrong amount, we will realize that in the bank reconciliation process at or towards the end of this presentation. So you can either adjust it now if you would like to do so meaning you can tick off the correct one or you can continue with us and fix it as we go through this epic saga of month to February bank reconciliation.



Let’s mark that one off as having been reconciled and so we have a difference of the 11 for 33. Once this difference is down to zero, then we have a cleared balance which will match the statement balance that does not match what is on our our balance sheet.



The cleared balance does not but the unchecked of items Help us then to figure out what the reconciliation items outstanding checks and deposits will be. We’re focusing in on the outflows now, so I’m going to filter that with the payments, I’m going to close the caret. And we’re ticking and tying.



So let’s go back on over to our statement. Remember that when you’re looking at outflows, you have the the minimum amount of information they will have is the date, and they will have the amount.



And then if it was a check that you wrote, you’re going to have to check number. So if you actually are writing checks, then the date will become less relevant, because it’s quite possible that it’s going to take a lot longer for the check to clear.



So we would expect then we as the bookkeeper to have entered these items, a fairly good timeframe before they actually cleared the bank. That’s why the check numbers are going to be more important in that instance, if on the other hand, we’re doing electronic transfers,



we will not have the cheque numbers, but the date will be more relevant given the fact that the electronic transfer should be pretty close to when we entered it in our system to when it cleared, if not basically the same date, depending on whether we’re dependent on the transfer or not to record, you know our transactions.



And if it was an electronic transfer, we might have some more information such as the vendor information as well, which would be kind of in a memo format, that could help us to tick and tie things off to. So let’s do this. If I if I go back on over here.



Also, just remember that this is an area that you might want to want to adjust your view to kind of see it by cheque number if you’re using cheque number, for example.



But date formatting it by date, organization is probably the most common I would, I would assume that’s what I would use most common to check and tie these items off.



Now, we’re always going to be going from the bank statements to the books because if it’s on the bank statement, it has to be on our books, unless there’s an error on the bank statement, which is not generally the case, if it’s on our books,



and not on the bank statement that could quite well be okay, or something that’s simply an outstanding check, therefore, ticking and tying off, you want to go from the bank statement to the books typically.



So here’s the 51 to three, five to set, or seven to 70. So if I go back on over and take a look at this, now this one’s a little tricky, you can see the check number, we’ve got that to check number that’s that payroll check that we basically said, we’re going to adjust it.



So I had to adjust that to basically reconcile in to the bank reconciliation. So we processed payroll, and then I said, Hey, we’re going to we’re going to add this other $60 with the same check number,



because I’ve already made the bank statements. And I want this to tie into the bank reconciliation. This is why we did that adjustment just for the practice problem purposes. So in other words, checking these two off 60 plus the 351 270 adds up to that 3572 74 check number 1012.



Going back on over 357 270. So that one’s a little bit of a little bit of a twist, but we’re going to check that one off done. Okay, next one for 10 for 10 on 10 is 1010.



The number also note that we are we’re checking these items off, which were outstanding items in the prior period. So here’s that for 10. We wrote these ones in the month of January. They were cleared. They were not clear to transactions, but they were included in our book balance because we wrote them in January. There’s a timing difference, but they’re clearing in February.



So in other words, if I take a look at the bank statement, or the bank reconciliation for the month of January last month’s bank reconciliation, the reconciling items down here are going to include these uncleared checks which that that amount of the 410 wasn’t. Here it is I went too far down the unclear checks and payments. So there’s the 410.



So we so it was on the prior year’s bank statement, but these are the these are the uncleared items, as of the end of January, which we would expect the majority of them to be clearing in the month of February, which they looks to be our thus far, these two have at least checking that one off, and then we’ve got the 185 614. Let’s do that one. So we’ve got the 185 640 over here. 185 640, check number 1013. So check number 1013. That is good. Let’s take that one off,



then we’ve got the 200-200-1015. So let’s go back on over we’ve got the 200 on and that was 1015 at the check number. So there is that one. So let’s check it off. Ticking it off. We’ve got the 130 1014 So the 130 1014 We’ll take it off. 1014.



That looks good. And we’re going to go back on over and say let’s take that one on. Have, we’ve got the 135873 1016. So go back on over, say 1016 18573, ticking it off. And then we’re going to center that one ticking it off.



And so then we’ve got the 180 1018 1018 180, tick it off. Notice it’s not exactly the same order. That could be typical, especially with check numbers, depending on how they order the items, because they could be clearing on different dates,



of course, and then we’re going to go back on over and say, Let’s make that one yellow FIDE, and then 1021 468 77. So 1021 is down here for 6877.



And so we’ve got some uncleared items down here, which is what to be expected. And then we’re going to say we’ve got the 1023 185 640. So let’s go back on over 1023 185 640, checking it off, and then getting close. We’re getting close. No cigar yet.



I want that cigar. I don’t smoke. I’m not going to smoke it, but I still 1024 1050 Here we go. 1024 1080. There we have it. Okay, and they’re there. We’ll mark it off. Okay, so now we these last two, the 520.



We’re not going to find those because that’s the withdrawal and the big charges. So we’re gonna have to add those most likely. Let’s go back over see where we stand. Now. If I go up top, we’re off by 320? That seems correct. Because that would add up to No, it’s not correct. Hold on a second. Hold on a second.



No, I missed something on the deposit side, it looks like because I’m going through here and saying, okay, my deposit should be at the 51 781 20. If I go back on over to here, I’m at the 51 981 2051 981 versus the 51. Seven, it’s off by 200. I’m going to go back to the deposit side of things. And let’s see what happened here.



So I’m looking here, I’m going to say is it that 200? Right there. Yeah, I think I checked off another 200. Somewhere along the way, if I go back on over that 200, if I uncheck that is going to be off by 120. Now, off by 120.



Because that 200 isn’t on my deposits, there’s a 400. Here, it should be the 400, I clicked off the 200 instead of the 400. So I’m going to go back on over and say I should have clicked off the 400. And that would get us to the 51 981 20 the 51 981 20 on the deposits.



So there’s the 51 981 20. So that’s the reconciliation in work right there. That there go. And so now we’re off by 520, which seems reasonable. Because if I go back on over here, that’s going to be these two items that I need to add.



Okay, so now, so now I need to add these two items. So let’s do that. I’m going to say this is going to be a withdrawal again, and the bank service charge. So let’s go let’s go back on over and say, okay, everything looks good. Now, I’m just going to add those two, and I should be back in business. And I like being in business business is good for me. So I’m going to then let’s say save it for later and add those into our check ridge.



So you could do that here. But I’m just going to go back into the to the bookkeeping area, and then go into the the chart of accounts, which if you were in the accounting view, by the way, would be under the accounting and then chart of accounts up top. And then I’m going to close up the hamburger and I’m going to go into the checking account. And let’s add these,



I’m just going to add them as expense items expense items. And I’m going to say they both happen at the end of the month Oh to 28 to two I’m going to say. And then I could I’m not going to put the payee, I could put the bank here as the payee, but I’m just going to call it here.



This is going to be a draw. Now this one, I’m going to say this one, this time, we’ve got this withdraw. Remember last time we said we had to withdraw, but we’re going to assume it was still for some kind of business expense. But what you would like to do, whether it be you or or if you’re doing bookkeeping for somebody else,



you would like to have the system that if you take cash out, then we’re assuming that’s going to be for personal use that you’re taking a draw out of the business. If it was if it was a corporation, you know, it’d be like a dividend,



but if it’s a sole proprietorship or a partnership, we would like to assume that’s going to be some kind of draw because if it’s an expense, I’m not going to have the expense account.



If it’s an expense and a legitimate business expense, you would like to pay it with something that has an audit trail. So we can easily record it because we want to record it and have the audit trail because you might need it to back up or support your tax deductions, for example.



So that’s why, you know, you want the audit trail for that, again, if you had something that was a business expense, when you have a legitimate reason to use cash, for example, you think the recipient would like the cash better as like a tip or something like that, I don’t know, then cash could be king in some situations,



and it could go a longer way. But if it’s if it’s no difference to the person you’re paying, then it would be nice to use some kind of electronic transfer that we can track, because the deductions are good for taxes, and we want to be able to verify them.



So here, we’re going to assume it’s a draw this time, this time, we’re going to assume it’s a draw for personal use. And I’m going to go back over here, so the owners taking it out 500. Now you could put the draw into an equity account of just the the equity account, or you might create another account called withdraws.



So and I think they made another account, for withdraws, withdraws, what did they call it, they called it, there it is, it’s owner draws, owner draws. So pick that one up. And that’s the one that’s the one, we’re going to take that one. So I’m going to say save it, it should then show up on the bank rec.



And then the other ones for the bank service charges, I’m going to say, bank charges. And that was for how much was that for $20 $20 One day, and that’s going to be in the bank service charges or something like that bank fees, service charges, that’s what they have here.



So I’ll put that one there. That looks good. And let’s save it. So I’m going to save it. And then it says, so it’s given me an error, but I just re entered it again, let me let me enter it.



So we put it into so it should work now. So I’m going to go back on over, I’m going to go back into my my handbook, and then go down to the bookkeeping again and resume reconciliation, we’re going to go down to reconcile, I would presume to resume with the reconciliation.



At this point, if it’s all the same to you. Let’s go to the payment side of things. And we’re going to go down and say now, we should have these two things. There they are ticking them off, ticked him off, don’t take them off. Don’t tick them off. Whatever you do up ticking them off, man, I’m ticking them off, I don’t care. I’m crazy.



So I’m going to say that’s going to be we’re going to tick those off to everything’s ticked off now. So now we should tie out to that 11 633 11 633. So, so up top 11 633 ties out looks good. We’re back to 00 on the balancing side of things, that looks good. So we’re about ready to reconcile.



We’re not going to do it yet though, because we want to look at the report next time. So we’re not hitting the green button yet. But let’s just kind of think about what we got thus far. We can tie everything out. We’ve got the cleared balance here that matches or the statement balance matches the cleared balance.



Because we have the beginning balance, the beginning balance matched out now our additions and subtractions we’ve ticked them off, and they all tie out to take this one out, they all tie out to and therefore our ending balance or clear balance will tie out. And that means these two are tied out, making it a zero difference.



But this clear balance. This is not the bank reconciliation because this cleared balance isn’t what’s represented on our books. That’s not what’s represented here on our books because our books isn’t what has cleared or not and includes everything we have entered including the uncleared items.



So the uncleared items, the things that we have not ticked off down here are the reconciling items, the things that had not yet cleared last time that have cleared this time, that’s the beginning cut off, and not all of them have, you’ll note that this one we wrote in January, that hadn’t cleared in February.



That doesn’t mean it’s it’s still not good, or that it won’t clear in the future. But the likelihood of a clearing is is greater given the fact that it’s been quite some time since or longer period of time since it has cleared or has been written.



And then the Indian side, these ones down here are the Indian components that we put in closer to the cut off of our bank rec 228, which have not yet cleared we would expect them to clear in March, we can check them to see if they have cleared in March. If they have, that’s okay.



It’s just a timing difference than and when we finally make the bank reconciliation, which we will do next time, then those will be the reconciling items that will take the difference between the cleared balance which is not the same thing as the statement balance.



All the stuff that we checked backed off all the stuff that mirrors and is exactly the same that is on the bank statement compared to what’s on the books, which is this item on the balance sheet as of 228 22.



So that’s what we will do. Next time we’ll hit that green button. We’re going to hit that green button next time don’t do it yet. You got it. You have to wait till we do it next time and it will be great

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