Bank Reconciliation Reports Month 1 9120 QuickBooks Online 2022

QuickBooks Online 2022 bank reconciliation reports Month Number one, get ready because it’s go time with QuickBooks Online 2022. Here we are. In our get great guitars practice file, 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 the get things done page.


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



Jumping back on over to our get great guitars opening up a few tabs to put reports in by going to the tab up top right clicking on it and duplicating it, tab to the left, right clicking on it, duplicating it.



Again, as that is thinking I’m going to jump on over to this sample company just to note where the reports are located left hand side reports that’s where they’re at.



That’s where they that’s where the reports home is, do you want to go and see them, go into their home, knock on the door, be polite knock first. And then that’s where they’re at. If we go back on over to the other view, the business view which has taken a little while to load up, but give it some time.



It’s an old computer business overview on the left hand side, and then we’ve got the reports that we’re going to be going into which reports do we want to open I don’t know, let’s just pick some random ones like this lads do the balance sheet, let’s open the balance sheet report up just for a change of pace.



Balance sheet will do the range change up top from Oh 101 to 2201 31 to two, run it, go to the tab to the right. And then let’s do another one. Let’s pick another one, like completely randomly reports over here close.



Let’s let’s do the income statement the profit and loss the Profit Loss sounds like just as a whim of today, one that we might want to look at, oh 101 to two to let’s say Oh 131 to two and run it. And then we’re going to go back to the tab to the left focusing in on the balance sheet. We’ve been doing the bank reconciliation process for some time now.



And we’re trying to compare, of course, what’s on our books to what’s on the banks books that given us a confidence, big internal control over the whole process. We did the whole reconciliation last time. But we held off of clicking that last reconcile button. And this time, we’re going to do it.



Let’s go to the tab to the left to do it, we’re going to go to the reconciliation process, which is in the bookkeeping tab on the left hand side, if you were in the accounting view, by the way, it would be in the Accounting tab on the left hand side. And then notice it would also be in the reconcile thing up top.



And then back to this view, it’s in the reconcile down below. We’re going to say resume reconciliation, I presume to resume last time you’ll recall that we finished this thing. This thing up, we said hey, look, there’s the ending balance.



That’s the statement balance that we looked at here statement balance is 61 to 41, we can calculate the clear balance matching it out by saying this is our beginning balance that matches out to what’s on the bank statement, we then take and tied everything off for the payments and the deposits that we’ve ticked off, those are going to be these two,



the ones that are unticked, then down here are not included in this reconciling item, which means that we reconciled what’s on the bank statement to what is the cleared balance in our books,



meaning we found everything on the bank statement in our books, take them off. And that’s what the cleared balance is. But that’s not our ending balance. However, our ending balance includes the stuff that we didn’t take off,



which of course, is the difference and that will be the reconciling items that will be generated when we create the reports which is actually the bank reconciliation, whereas this is just the bank reconcile Lean process. This is the process of reconcile lean, which is really important.



But the end result that gives evidence that we have reconciled is the bank reconciliation, which we will create from this, which will then take the cleared balance which is also at this point time the bank statement balance and then put into place the reconciling items which should be now outstanding checks and deposits. Those items that we put into the books usually close to the end of the month,



which have not yet cleared we expect them to clear in future periods because it’s just simply a timing difference with regards to when the bank is going to know about these items we know about them because we wrote them on our side Okay, so that’s it. Let’s go ahead and finish this off.



So I’m going to go up top, finish it one more thing, before I finish it here. Notice if this is not zero, you can kind of force the finish it, you can say Finish it. Anyways, if you do that, QuickBooks will then put an adjusting entry to kind of reconcile. So you might say, hey, look, if this is off, like by even like a couple pennies,



like that’s off by five cents, whatever, I’m going to go and force the reconciliation, you can do that. But even a couple pennies will actually lower the amount of your ability to use it as an internal control a lot.



Because if it’s off by just a little bit like $1 off or even a couple pennies off, then it could be the result of multiple transactions that is causing that. So you might say, I’m not, I’m not worried about in other words, changing my cash account and adding a couple pennies to get my ending balance.



Correct. That’s not I’m not a problem. If that was the only thing I wouldn’t care, you can adjust it by something that’s in material to get my ending balance, correct. Not a problem. But that’s not why we’re doing the bank reconciliation, we’re doing the bank reconciliation, to verify all the detail that is happening.



So we get an internal control on all the other stuff that’s happening on the other side of each transaction. And if I was to just force, a reconciliation of even a small amount, it could be something due to multiple transactions,



like multiple deposits and multiple checks, I could have 10 checks, and 10 deposits or something that are netting out to a penny offer a couple cents off. And that’s why you want to reconcile basically,



exactly, which is something you should easily be able to do, especially if you don’t have that much in terms of your transactions, because all you have to do is take and tie them off, you know, each each item, it has to basically work.



So that’s just my advice that you want to get that to tie it off as as much as you can, you know to zero physically, that’s the height of your your internal controls, if you can do that, okay, let’s finish this out, finish it for crying out loud, hit the button,



hit the button, you reconcile this account to see report this reconciliation, click reconcile report. Otherwise, you’re done. I’m going to say I want to view the report. Of course, of course, I want to view the report.



So here’s going to be our reconciliation report. So I’m going to scroll down, we’ve got the summary information up top. Now this can be kind of an intimidating type of report, because there’s a lot of detail in it. But really, they’re given more detail than you really need to have in it.



So I’ll kind of explain that as we go. But and also note that the bank reconciliation report is different from other reports in that these other reports, like the balance sheet and the income statement are generated directly from the data input that we’re entering into the system,



we’re into the data input, and we’re using that to create the financial transactions. The balance sheet report is reconciling something on the financial statement to something external to our books, that being the bank statement.



And therefore it’s not being created just from our financial transactions. It’s also something that if you were to basically reconcile, and then go back into, say, the month of January, for example, in this case, and change something delete a check, that was that was cleared, then if if they allowed the report to be updated, along with you deleting the check, it would be out of balance, right? If you had a reconciliation,



someone went back in to January and deleted a clear check. And this report was to update along with that, then you would have something that would be out of balance. Therefore this report is something that has to be somewhat static in nature, this is a reconciled timeframe.



As of this point in time. If you go back and delete transactions, this report can’t update, because if it if it did that, then it would be out of balance. So what you want it and that means it’s a little bit harder for QuickBooks to save this report as well, because it can’t just refresh the report as data is being changed. So you most likely want to print this report out and actually save this report.



So that so that you have the report as of the point in time that it was that it was done. And then if someone goes in and deletes something or something like that, you actually have the report and you can go back in and take a look at it.



Okay, so then up top, we’ve got the the statement beginning balance. So obviously this comes from the statement here, the 30,000. And then we’ve got the checks and deposits that were cleared, the 1118 29 and the 143 70.



Those are of course of these two items, the activity from the bank statement, and then we’ve got the statement ending balance, which you could also basically say is the cleared balance because we checked all those items off on our side as well as the ones we put all the checkmarks at. So there is going to be the statement balance that is on the bank statement as of the cutoff date of January 31.



Then we have the uncleared transactions, these are the ones that that we’re interested in because these are going to be the reconciling items. So these are the money unclear transactions as of the cutoff date or the end period of the bank statement 131 22.



Now, note here, if you were to give this report to like an auditor and just have this top part, the auditor would not be satisfied with that, because this number could have just been made up, right? Like, what are those checks?



I would like to be able to verify those checks. I want to see that they cleared in February to verify that I’m not that you know, that’s a legitimate amount that you didn’t just plug in the difference and say, yeah, those are uncleared items. So it’s a good summary report to look at it but the details down below,



then we’ve got the register balance, which is 88 645 25, that should tie up to what’s on your balance sheet. So if I go to my balance sheet, 88 645 25, this is not the cleared balance. This includes everything uncleared and clear that we entered into our system.



And so if I go back on over, that ties out that is the reconciliation basically, from here to here. That’s the bank reconciliation, this stuff up top is just repeating basically, what’s on the books, this is the meat of the reconciliation.



But we don’t have enough detail about this number 27 403 40. That’s why we need to detail down below this stuff down here. Unclear transactions after 131 22 don’t really need that. That’s just reporting stuff after that after January after the cutoff date. So why they put that on there. still unclear to me, but there it is, register balance as of



two. So they’re given us the balance as of two, one. And again, I’m not sure that doesn’t really add a lot of value. To me. This is basically the reconciliation up top. Okay, so let’s go to the detail down below. So then they give you all of the detail, the checks and payments that were cleared. All this is doing is saying this is the stuff that you ticked off.



And if you ticked it off, that’s because it was on the bank statement. So that’s this is us, basically reconstructing all the stuff that is on the bank statement that we ticked off as declared items, again, doesn’t really add a lot of value. Because we already have that on the bank statement, what we’re looking for is the uncleared items.



So this is what you if you were an auditor, and looking back in this, this is what you’re concerned with, because I want to see these items and make sure that they’re legitimate items and items that that are going to clear in the future.



So from a bookkeeping side of things, we’re looking at these items, and we’re going to say, okay, these items are these going to clear in in February. If so, then I can be I can, I can say that’s a legitimate item here. So for example, this one was written on 126 126, it looks like they were all written pretty close to the end of the month.



So I would expect then that they would, they would clear sometime in the following month, February, if I go into February, which I can do, because when we do the reconciliation for January, it will most likely be sometime in February,



the following month, that I am performing the reconciliation, therefore, I can go into February and see if these have cleared in February. If they have, then I’m like well, that’s these are legitimate items there. If they haven’t, then they still might clear that doesn’t mean they’re not legitimate items,



but I’m a little concerned with them, I might follow up with them and make sure that the payments are being processed and whatnot and see what’s going on with him. That’s one of the great things about having, you know,



a full service system is that it is this double check so that you can basically see if someone didn’t cash your check, if you’re actually writing checks, it’s a big deal. With the checks, you can look up and say, Hey, did you write Did you clear the cheque?



Or did the cheque get lost? Or is there a problem in my late on the payment due to due to some problem that I thought I had written it but it didn’t go, it didn’t go through? So then we can we can look up those kinds of items from the bookkeeping side.



And if they have cleared, then again, we are we’re content that these are just reconciling items for this timeframe. But also just realize that these checks clearing are not really the only point of us doing the bank reconciliation,



if we can determine that these checks are legitimate checks that we wrote. And they weren’t something like if you were from an auditor standpoint, European skeptical,



you might say, well, maybe they just plugged in amount in there, just to reconcile just to give me what I want, right. But but if I can verify that these are legitimate amounts, then that that I know exactly what the difference is between my register balance and the bank balance.



That gives me assurance not only over these numbers, but over all the numbers. That’s the point you want it you want to get internal control over everything that has been put into the system, at least with regards to cash transactions, not just these items. And then this one down here is the outstanding deposit.



Again, this is the big thing that you’d be looking into. This is the one more you’d be most concerned with our bookkeeping because it was made on the 25th. If it was an electronic transfer or something like that, or we put the deposit in the bank, you would think it would have cleared by the end of the month.



So We would definitely follow up with that and say, Hey, did that pay into that clear in February. And if it did, then we’re like, okay, so it cleared. So we still got it, that’s fine.



And that would be an outstanding item as of this point in time, then we got the unclear checks and payments after this point in time. These are the items that happen after our cutoff date. Once again, this seems like information.



That’s not not necessary to me. But this is just the information after that, that date. So that’s basically the bank reconciliation. Let’s go ahead and and save this report, I’m going to save it.



And say, notice, we have some different options for the saving, we don’t have like the same kind of list of PDF, and so on up top, so I can hit the print button here. And this is where that CutePDF printer could really help. Because now I can say okay,



I want you to print it to the cute PDF printer. And so now, and now, even if they don’t give me a save as PDF option, I can, I can still make a PDF of it, it’s good to have a hard copy of these items. So that if something happens in the future, you have you have a hard copy,



because again, sometimes it’s a little bit tricky for this QuickBooks system to save these reports, because of what we talked about before, I’m going to put this into our folder here. For the bank recs, I’m just going to copy the location we want to put this thing into.



And so that’s where they’re going. That’s where it should go. And then I’m going to call this bank rec for Jan 2020 to 2000, double Deuce and save that and see if it puts that I got this open twice, don’t I. So it should put that there.



So bank rec Jan double deuce, let’s go ahead and open it up in a PDF format. I’m going to open it up with my Adobe Reader. So there it is, let’s click let’s go back on over and I’m going to go back to my report here. And so that looks good.



So they opened it up in another screen to print it, I’m going to go back to the first screen. And let’s then go back and say we’re going to go back into this, like if I hit the the, the hamburger. And let’s go back to the reconcile items on the left hand side. So when I go into the reconcile items, I’m going to close up the hamburger.



Notice you’ve got your little your little path up top the chart of accounts, bank, registered the reconciliation, and then we’ve got our item down here that we can go into for the statement.



And so I can go into the statement back into the statement here and then access it, it’s for me, it’s still something that I feel like if I’m if it’s important for the reconciliation process that I would print it out and have a hard copy of it as well or digital pdf copy outside because the bank reconciliation is a bit different than the generation of the other reports that makes me feel a little more comfortable still,



even though you can open it back up down here. So then once we do the next one, we’re going to reconcile for February, we can go back into the reconciliation button up top again, continue the process for February.



And we’ll do that in a future presentation. Noting that as you as you do the bank reconciliations you would like to do them on a month by month basis. But it’s quite possible that you’re in a situation where you haven’t reconciled for a couple months.



Or that you’re you’re doing a situation where you’re entering all the all the information, you know, for a few months of data into the system, depending on what type of bookkeeping you’re doing.



And then so you might end up doing multiple bank reconciliations, you know, at back to back kind of thing. Let’s take a look at our trial balance, which we haven’t seen for a little bit.



Because we have entered a couple transactions. When we went to the bank reconciliation, those transactions being the fact that we included the withdrawals and the bank service charges, for example.



So let’s open up the reports and just see where we’re standing now, with the trial balance, going to type in trial balance to find it, finding the trial balance, and then I’m going to I’m going to make this all the way to the end of the year. So you could see oh one to two to 1230 122.



So we’ve been working just through January. But if I put all data input for for up until this point in time, this is where we stand at this point in time. If your numbers reconcile to this then that is great. If not try changing the date range.



It’s often a date range issue. We’ll be taking a look at a transaction detail report at the end of the section in order to diagnose any differences.

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