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EazyFreightPaul
November 4, 2021
Solved

Matching Bank balance with balance in Quickbooks

  • November 4, 2021
  • 1 reply
  • 0 views

Currently there is a £10k deficit between the balance in my bank and the balance shown on quickbooks.

 

I moved over to quickbooks from a different software at the start of my financial year. However there were payments in and out of the account in Month 1 that were relating to invoices form the previous financial year which I have marked as "Excluded".

 

When I look at the Excluded section (for ease) there is £10k paid out and £20k paid in which matched the £10k deficit I am seeing.

 

My question therefore is...

Since these excluded transactions are from the previous financial year and documented in my previous accounting software, in order to make the banks balances match...

Would it be acceptable to create a sales invoice for £20K and a purchase Invoice for £10k and tage the payments accordingly?

 

Or is there a more correct method?

 

Any help would be much appreciated.

Best answer by Ashleigh1

Hello EazyFreightPaul, 

 

Welcome to the Community page, 

 

You can create 1 invoice and then in the description section you can enter the details that is for the relating payments or missing invocie numbers then either get the payments out of excluded and then record the payments off the total amount of the invocie or just record the payment on a date of your choice. 

 

1 reply

M
Maybelle_S
November 5, 2021

Let me help ease your worries, @EazyFreightPaul.

 

I can share some resources about the differences between QuickBook's balance and bank balance.

 

Here are the possible reasons your bank balance and QuickBooks balance are not the same.

 

  • New transactions for a connected account
    • Make sure to add or match all transactions before running your report.
  • Outstanding transactions
    • To fix this, sort out your QuickBooks Online bank register by date and compare it with your bank statement.
  • Credit card (liability) account
    • Compare your credit card statement with the QuickBooks balance. Verify if the Balance column is showing a positive amount.
  • Duplicate transactions
    • The system automatically locates duplicate transactions and matches them. However, there are times the system can’t locate any similarities in the details of the transactions. You can manually match the transactions.
  • Edited or deleted transactions
    • You can run the Audit log to verify the details of the edited or deleted transactions.

 

Feel free to visit us here in the Community and let us know how it works on your end. I‘m always here to help you in making sure your transactions are accurate and reconciled.

E
EazyFreightPaulAuthor
November 5, 2021

Thank you for your reply @Maybelle_S 

 

I understand the below and am confident that the discrepancy lies with "Outstanding Transactions" that have been excluded.

 

As mentioned in my question:- Any transactions that appeared in the new tax year but were related to an invoice for the previous tax year have been excluded as the payments were recorded on my previous Accounts software.

 

My question is more related to the correct way of handling this:

Would it be acceptable to make 1 purchase invoice and 1 sales invoice to cover the total amounts for the excluded transactions and tag the excluded invoices to the relevant invoices?

 

Ie if there was 10 sales transactions totaling £10k... make one sales invoice for £10k and tag all exempt sales transactions to this one invoice?

A
Ashleigh1Answer
November 5, 2021

Hello EazyFreightPaul, 

 

Welcome to the Community page, 

 

You can create 1 invoice and then in the description section you can enter the details that is for the relating payments or missing invocie numbers then either get the payments out of excluded and then record the payments off the total amount of the invocie or just record the payment on a date of your choice. 

 

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