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vicki1014
February 24, 2023
Question

Bank register vs actual bank balance

  • February 24, 2023
  • 1 reply
  • 0 views

In November of 2020, we purchased an existing company that had been using QBO.  Their office staff posted payments in QB from customers.  These show in the Bank Register but were actually deposited to the former owner’s bank account rather than our account.  Our account has been completely reconciled, however, the bank balance in QB is nearly double what we have in our account.  I believe it is due to the deposits showing that were before we bought the business.  How can I fix this without messing something else up?

1 reply

MaryLandT
MaryLandT
February 24, 2023

I hope you're having a successful business week, vicki1014.

 

Let me provide some ideas so you can fix this in no time. Your bank statement must always be the basis for reconciling transactions.

 

In your case, payments posted to the former owner's bank should be included when reconciling your bank account. If you've reconciled them, redo the reconciliations and exclude their payments.

 

If you're using a standard QuickBooks Online, you can only unreconcile one transaction at a time. Please refer to this article to learn about the process: Undo or remove transactions from reconciliations in QuickBooks Online.

 

Then, when reconciling again your bank account, only mark transactions that show on the bank statement. Don't forget to check the opening balance. This maintains the accuracy and consistency of the numbers. For more information and detailed steps, check out this article: Reconcile an account in QuickBooks Online.

 

If you aren't confident about unreconciling one transaction at a time, you can reach out to an accountant who is using the QuickBooks Online Accountant version. They have the tool to undo the entire reconciled account.

 

If you don't have an accountant, you can browse this link to find one: https://quickbooks.intuit.com/find-an-accountant/.

 

I'm also adding these helpful articles about managing online banking transactions and fixing any reconciliation errors that you might encounter.

 

 

Working with you is a pleasure for me. Keep in touch for more help with banking topics. We're here to back you up 24/7. Take the best care always and have a wonderful weekend!

V
vicki1014Author
February 24, 2023

Thank you, but that doesn't help.  Those transactions were not deposited in our account nor did I include them in my reconciliations.  The problem is, they are showing on our books, causing our QB balance in the Banking Register to be incorrect and not match the bank balance.  We do not have access to the former owners banking records or account.  A former employee included them and was supposed to do some kind of adjustment or journal entry to be sure they did not show as our income, however, she did not do that.  My boss wants this fixed but to delete those entries completely will mess with other parts of our invoicing and received payments history.  Other advice?  

MaryLandT
MaryLandT
February 24, 2023

I'm glad to hear from you again, vicki1014. And, I appreciate the details and clarifications about the issue.

 

You can adjust by creating a Clearing account. It's used to move money from one account to another when you're unable to do it directly.

 

Please refer to this article for the steps: Set up a clearing account. This may be for QuickBooks Desktop, but the process is the same on the online version.

 

Upon sharing this, I still suggest consulting an accountant to know what accounts to debit and credit when creating a journal entry.

 

Please feel welcome to contact me again in this thread and I'm more than happy to help.

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