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mayflower76
January 26, 2024
Question

processing fee tracking means bank to QBO transactions don't match but reconciliation totals do match

  • January 26, 2024
  • 1 reply
  • 0 views

Hello! I'm using this workaround to capture the processing fee expense for fees that are deducted from a client's payment BEFORE the deposit is made into our bank account -- related to payments collected through 3rd parties like square, shopify, godaddy, etc.

 

When I go to reconcile the account in QBO, the overall totals for the period are correct... starting and ending balance, but the actual transaction details don't match the bank statement at all, because I've modified the incoming payment amounts in QBO to add the fees, so I can then resolve the difference to capture those fees as an expense.

 

SO, my question is... does it matter? If the overall reconciliation totals match and we have our statements to show the actual transaction details that were processed (and we have our expense transactions to track the diff), does it matter that the transaction details are different between our bank statement and QBO?

 

Not an accounting pro here... just a small business, self-bookkeeper wanting to keep things in good order. Thanks in advance for any specific, relevant info or guidance.

1 reply

C
ChristieAnn 11
January 26, 2024

Welcome to the QuickBooks Community, mayflower76.

 

Let me provide details on how transactions work in reconciliation. I'll also ensure you can reconcile your account efficiently so you have balanced and accurate financial data.

 

When reconciling an account in QuickBooks you'll compare each transaction you have on your bank statement with the ones entered into QuickBooks. This is done to ensure you have accurate data and to avoid discrepancies.

 

Since you modified the incoming payment amounts in QuickBooks to add the fees, this is the reason the actual transaction details don't match the bank statement at all. However, you're already on the right track when it comes to handling fees, client payments, and transactions. 

 

I recommend consulting an accountant to determine whether the difference in transaction details between your bank statement and QuickBooks is considerable when reconciling an account. They will be able to advise you on how to correctly handle accounting entries, particularly when reconciling them in the program.

 

In case you need additional guidelines to help you fix any reconciliation issue that you might encounter, you can read this article: Learn the reconcile workflow in QuickBooks.

 

Leave a comment below if you have other concerns related to reconciliation in QuickBooks. I'm always here to help you further, mayflower76. Take care.

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