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kenglund
August 9, 2021
Question

Account Balance and Prior Year Loan Activity

  • August 9, 2021
  • 2 replies
  • 0 views

Hi there,

Our company has been in business for a few years now, but implemented QB starting January 1st of this year. We have a truck loan that originates October 02, 2020 and payments continue into this year. So I created a Loan Account in QB with the date and amount of deposit and the dates and payment amounts of the two payments made in 2020. Loan amount is 13,505.00, payments total 631.12 for 2020. 

We chose not to back track any farther than this year for all other expenses as taxes have already been filed and it is unnecessary, but this loan continues to 2021 so needs to be tracked. Each month reconciliation for this year has balanced fine. My bank account balance in QB is showing 12,873.88 higher than the true balance. (This is the 13505.00 minus the 631.12 paid in 2020).

 

My question is, how do I right this in QB? 

 

Any help will be greatly appreciated!

2 replies

M
MadelynC
August 10, 2021

I’m here to help ensure account balance will be accurate in QuickBooks, @kenglund.


An incorrect opening balance is one of the common reasons why QuickBooks balance is higher than the actual one. Also, there may be other expenses that you still need to record in the program.


You can use your bank statement to review your transactions in the register as well as the balances. An account register gives you the history of an account. It lists all past and current transactions associated with it.


Here’s how:

 

  1. Go to Accountant menu.
  2. Locate and select the bank.
  3. Review the transactions.


If you need to make quick edits, you can do them right from an account register. Just select Record, then enter the necessary details.


I’ve attached resources to track your loans efficiently and about resolving balances in QuickBooks:

 


Let me know if you have other account concerns. I’m always here to help. Have a good one!

K
kenglund1
August 17, 2021

Hi! Thank you for the response, and apologies for my delay in replying. My opening balance is correct, I had input what the opening balance was on January 1st, 2021. The loan for the truck does not count towards the opening balance of the checking account. So I am still at a loss as to why the proceeds for the loan are causing my balance in quickbooks to be so much higher than what it is.

RenjolynC
RenjolynC
August 17, 2021

Thank you for your reply, kenglund1.

 

I want to share some information about your concern.

 

When the QuickBooks Balance is higher than what is in the actual bank balance, it's possible that a payment for the loan was not recorded or was deleted.

 

Let's check your checking account if there are missing payments.

 

If no payment was recorded to reduce the loan deposit, you'll want to run the Audit Trail or Transaction Detail report. This report is used to see if there are any transactions changed.

 

To run a Transaction Detail report, here's how:

 

  1. Go to the Reports > Custom Reports > Transaction Detail.
  2. In the Date From field, select the earliest date in QuickBooks for the account. You can also leave it blank. Then, choose the date of your last reconciliation from the Date To box.
  3. Click the Filters tab and select the account you're reconciling from the Account drop-down menu.
  4. Search for Entered/Last Modified in the Filter box and set the Date from to the date of your last reconciliation. Then set the Date to field to today's date.
  5. Hit OK to run the report.

Search for any discrepancies or transactions that don't match what's on your bank statement. If someone edited of deleted the transaction, I suggest reaching out to the person who made the change. There might be a reason why they made the change. Once you know, you can edit or re-create the transaction as needed.

 

For reference in recording the loan, you can read this article: Manually track loans in QuickBooks Desktop.

 

Please feel free to leave a comment letting me know how things go after giving this a try. I'll keep an eye out for your reply. Stay safe.

A
AffordableB
July 24, 2024

I do not see an answer to this question. Were you ever able to solve this issue? I have been struggling with the same issue and can not seem to get help with it. If you were able to resolve this, could you please share the information? I'm almost out of hair lol

R
Rasa-LilaM
July 24, 2024

Ensuring that your bank balance in QuickBooks matches your actual balance is important for a smooth reconciliation process, AffordableB. I'm here to make sure you get connected to the right support to help you with your account balance and loan concerns.

 

Based on the scenario, we recommend reaching out to an accountant for further guidance. They can provide advice on effectively tracking loans and payments in QuickBooks Desktop (QBDT), especially for previous years' entries. Furthermore, they can review your banking data to identify any discrepancies and offer solutions to address the issue.

 

In case you're using the current QBDT version and want to be reminded of upcoming payments, use the QuickBooks Loan Manager to manage the transactions. Alternatively, you can manually track loans in the program.

 

Additionally, utilize the solutions in these resources to reconcile your account and handle any discrepancies:

Fill me in if you have additional questions about loan management and balancing your account. The Community is always ready to lend a helping hand.

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