Question

bank reconciliations using sweep accounts

Forum|Forum|2 years ago
August 14, 2023
3 replies
0 views

Does anyone know how to reconcile bank accounts when sweep accounts are used? We started using sweep accounts with Key Bank and I'm not sure what to do with the debits and credits that are being downloaded into quickbooks online but I have been unable to reconcile for several months now. As of now, I have been excluding them all but the ending balance on the sweep statements are $0 but clearly that is not accurate as there is money in the accounts. Please let me know if you need additional information.

QuickBooks Online

MariaSoledadG

I'll guide you on how you can reconcile sweep accounts, Tina5.

We reconcile to help us certify the accuracy and integrity of our financial records. It is recommended that small businesses go through the reconciliation process at least on a monthly basis, although some may do it daily for cash flow reasons.

In QuickBooks Online (QBO), once you have your monthly bank or credit card statement, you can start reconciling with the oldest statement. To do so, follow the steps outlined below:

If your accounts are connected to online banking, make sure you match and categorize all of your downloaded transactions.
Go to the Gear ⚙ icon and then Reconcile. If you're reconciling for the very first time, select Get started.
From the Account ▼ dropdown, choose the account you want to reconcile. Make sure it's the same one on your statement.
Review the Beginning balance. Make sure the beginning balance in QuickBooks matches the one on your statement. Here's what to do if they don't match.
Enter the Ending balance and Ending date on your statement. Some banks call the ending balance a "new balance" or a "closing balance."
If you see it, review the Last statement ending date. This is the end date of your last reconciliation. Your current bank statement should start the day after.
When you're ready to start, click Start reconciling.

Moreover, QuickBooks Online automatically generates a reconciliation report for every session. Learn how you can view, print and export them using this article: How Do I View, Print, Or Export A Reconciliation Report?

Reach out to us if you have any concerns when reconciling accounts. We're here to get make sure we got you covered.

T

tina5Author

I know how to reconcile bank accounts but since we started using sweep accounts, the reconciliation isn't accurate. There are debits and credits being downloaded from the bank that I have been excluding thus far but the balances on the statements, both the regular bank statement and the sweep statement don't match. They don't match even if I add all of the downloaded debits and credits. The bank has not been at all helpful.

C

CharleneMaeF

I'm here to ensure your regular bank statement matches your sweep statement, tina.

Let's record the downloaded transactions from your bank account as a transfer. Doing so ensures the balance match with the sweep account. Beforehand, let's remove them in the Excluded section. Here's how:

Go to Bookkeeping and then select Transactions.
Choose Bank transactions.
Select the Excluded tab.
Locate the transactions, then select Undo.
If prompted, click Continue.

Once done, let's go to the For review page to record the transactions as transfers. I'll show you how:

Go to the For review page.
Click the downloaded transaction.
Select Record as transfer.
Under Transferred to, select the Sweep account.
Add the other details.
Once done, click Confirm.
Repeat the steps for the other transactions.

For more details about categorizing your bank data, please see this article: Match Bank Transactions in QuickBooks Online.

Moreover, it is recommended to review downloaded bank and credit card transactions to ensure they're added to the correct accounts.

I'm here to assist you with any future concerns you may have regarding reconciling data in QuickBooks. Feel free to post your questions or any follow-up inquiries on this topic, and I'll be happy to help.

S

Sky Hi

How to reconcile bank statement thru Quick Books desk top with a sweep account

Q

QueenC

Hello there, @Sky Hi. Reconciling bank statements using sweep accounts in QuickBooks Desktop is an easy process and I want to ensure you that I'm here to help you through performing it.

If your sweep account functions as a regular cash account, you only need to enter the transactions and reconcile the cash balance at the end of each month based on the statement provided.

Once you get your bank statement, here's how you can reconcile:

Go to the Banking menu, then select Reconcile.
Choose the bank account you want to reconcile in the Account field.
The Statement Date is pre-filled automatically, typically set to 30 or 31 days after the statement date of the previous reconciliation. You can modify it as necessary to align with your bank statement.
QuickBooks also automatically populates the Beginning Balance. It derives this value from the ending balance of your previous reconciliation.
Type the Ending Balance, Service Charge, and Interest based on your bank statement. Don't enter charges you've already entered in QuickBooks.
Review the fields. Then select Continue or OK.

If the starting balance doesn't match your statement, there's no need to worry. There are several tools available to assist you in resolving this issue.

I'd still suggest getting in touch with your accountant to get advice from technical and accounting perspectives. If you don't have one, you can visit this website: Find a ProAdvisor.

Additionally, I've included these articles to help you in case you run into issues or discrepancies during reconciliation:

Please get back to us whenever you need extra help reconciling bank statements in QuickBooks Desktop. I'll be right here to provide some more information to make sure everything is accurate. Keep safe.

B

BHamilton1

I also had difficulty with reconciling the Sweep accounts, because I set them up as a subaccount to the associated checking account. I was only able to reconcile once I removed the subaccount affiliation, otherwise both sides of the entries were reflected in the associated checking account.

Unfortunately, I was only able to change the subaccount setting by deleting it and creating a new account. Luckily, I found this issue in the first month's reconciliation, so it was not difficult to unwind. Good luck!

A

Annoyed at this softward

Did you find the answer on how to book the SWEEP account debits and credits to do the bank reconciliation?

G

GenmarieM

I understand that managing sweep account transactions requires precision in QuickBooks Desktop (QBDT). Let's get into the details.

If your sweep account operates like a regular cash account, you only need to record the transactions and reconcile the cash balance at the end of each month using the statement provided. This process ensures that your records accurately reflect your account's activity and helps maintain financial accuracy.

With regard to recording debits and credits entries, I recommend consulting with your accountant or an accounting professional for further guidance. If you don't have an accountant yet, you can visit this link: QuickBooks Certified ProAdvisor.

Moreover, I've added this article to help you if you encounter any issues after reconciling your account: Fix issues when you're reconciling in QuickBooks Desktop.

Let us know if you have further concerns about reconciling sweep accounts in QuickBooks Desktop. The whole Community is always here to help you in any way we can.

A

Annoyed at this softward

Your answer does not help at all. I need guidance on how to account for the debits and credits of the sweep account

Sign up

Login with SSO

Login to the community

Login with SSO

Scanning file for viruses.

This file cannot be downloaded