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Kristin918
April 13, 2021
Question

Reconciliation

  • April 13, 2021
  • 1 reply
  • 0 views

I am working on bank reconciliation but we had to make a handful of corrections since the last reconciliation and now my beginning balance doesn't match. There aren't any transactions that needed to be corrected to fix the beginning balance so my question is do I simply ignore that the beginning balance doesn't match?

 

The adjustments that were made were relating to old transactions that had been apart of previous reconciliations. For example the person doing our accounting prior made deposits and instead of assigning the deposit from our client there by pulled from the undeposited funds transaction she simply selected Job Income as the account, leaving a balance in A/R and/or the Undeposited funds holding account. I deleted the deposit and corrected her errors and reentered the deposit. There were also checks written that were not attributed correctly to bills, those we also deleted and re-entered to clear out A/P.

 

Do I simply proceed witht he reconciliation and select all of those transactions to reconcile this month even though they were older? They all appear in the reconciliation list...

 

Thanks for your help!

1 reply

S
ShiellaGraceA
April 13, 2021

Thanks for posting here in the Community, @Kristin918.

 

I have some information about reconciling your account. You'll want to create a journal entry to correct your beginning balance. Then, hide your old transactions from the reconciliation list. That way, it'll be easier for you to reconcile with your bank statement. Let me guide you how.

 

To create a journal entry:

 

  1. Go to the Company menu, then choose Make General Journal Entries.
  2. Change the date to the correct statement date of your beginning balance.
  3. Select the appropriate account from the Account drop-down.
  4. Enter the correct opening balance in the Debit column.
  5. On the second line, pick Opening Balance Equity.
  6. Click Save.

 

After creating a journal entry, proceed with the reconciliation process. To filter your transaction list, remove the older ones. Here's how:

 

  1. Go to Banking and then select Reconcile.
  2. Enter the Ending Balance.
  3. Hit Continue.
  4. Tick the box next to Hide transactions after the last statement's end date (see image below).
  5. When you're finished, click Reconcile Now.

 

 

Learn more tips about the reconciliation process in the articles below.

 

 

If you need help with other banking tasks, please browse this link here to go to our general banking topics with articles.

 

Let me know if you have other questions or concerns with reconciliation or bank accounts. I'll be happy to answer them for you. Take care and have a great day.

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