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Podsauto
March 5, 2025
Question

Beginning a bank reconciliation that has never been done before. QB Checking account has been established since 2011.

  • March 5, 2025
  • 1 reply
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I would like to start a first time Bank Reconciliation on an checking account that has been established since 2011.  I want to start reconciliation on 01/01/2024 to current.  How do I get an open balance to match my open balance on my Bank statement? 

I will also be doing this for a credit card statement reconciliation. I want to start on 01/01/2024. How do I corrrect the opening balance to start?

 

I am using Intuit Quickbooks Enterprise Solutions 24.0

 

I do not want to do any prior reconciliation before 01/01/2024

1 reply

FishingForAnswers
FishingForAnswers
March 5, 2025

@Podsauto  You don't really have an option; a reconciliation is a reconciliation of all entries associated with a particular account up to the statement ending date you are working with. The only way to establish a new beginning balance is through reconciliation.

 

If your data is correct, then it'll work out fine.

 

If it is not correct, then you'll need to make some manner of adjusting entry(ies) followed by a mini reconciliation to establish a new beginning balance as of the first non-closed date. This non-closed date would also be your reconciliation ending date.

 

If your business has not filed their 2024 income taxes, this would be 1/1/2024. Otherwise, this would be 1/1/2025.

 

The necessary entry to make that adjustment would depend on exactly how your account is out of balance and would be best discussed with a local accountant or CPA, or failing that, through one of QB's ProAdvisors.

P
PodsautoAuthor
March 5, 2025

Thank you for your quick reply.  

The taxes for 2024 have not been processed and books are still open from 01/01/2024 - Current.

Books and taxes have been closed  as of 12/31/2023.

I just want to start reconciliation from bank statements beginning on 01/01/2024. I want to know how to have a beginning balance that appears on the 01/01/2024 Bank Statement.

 

Can this not be done?

FishingForAnswers
FishingForAnswers
March 5, 2025

@Podsauto  Beginning balances are only established in QB in one of two ways.

 

The first is the balance established when you first created the bank account or credit card account within QB.

 

The second is the balance established after a reconciliation.

 

Since the first way isn't available anymore, that means you'll need to do a reconciliation with an ending date of 1/1/2024.

 

There are two ways that can go.

 

First, your books prior to 1/1/2024 for this bank account are squeaky clean and you can reconcile them as of 1/1/2024, or even 12/31/2023, without any issues.

 

Second, your books prior to 1/1/2024 for this bank account have problems resulting in either a balance that is too high, or too low.

 

If it's the first option, well, there you go.

 

If it's the second option, you'll need to make an adjusting entry dated for 1/1/2024 that will allow you to establish a proper beginning balance for 2024.

 

What this entry consists of depends on the details of your business; someone would have to lay eyes on your financials to offer any particularly good advice, but a common method is to use an Equity account set against the bank account.

 

Once you manage this first reconciliation ending on 1/1/2024, it is just reconciliation as normal each month.

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