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vabburi-clarku-e
July 13, 2024
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Reconciling previous year bank transactions that are not reconciled

  • July 13, 2024
  • 2 replies
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My client seems didn't do any bank reconciliation from last year 2023. Now I corrected January 2023 opening balance without reconciling the 2023. How can I eliminate all these 2023 entries now to perform 2024 reconciliation. Please help me with better solution. I have read something about off period clearing of transactions. But I don't think it will work for me. 

Best answer by ErwinQ

Hello there, Vabburi. I'm here to guide you on how you can reconcile your account in QuickBooks Online (QBO).

 

In QuickBooks Online,  in order to keep the balance accurate, you'll need to reconcile first the transactions from 2023 before we can proceed to 2024.

 

The off of clearing transaction is only applicable to QuickBooks Desktop (QBDT).

 

You have the option to reconcile the 2023 transactions by manually putting R so it will be removed on the reconciliation page.

 

I'll add a screenshot for visual reference.

 

You can also create an adjustment entry to force reconcile the account. To do that follow these steps:

 

  1. Go to the Gear icon.
  2. Select Reconciliation.
  3. Click the dropdown arrow beside Save for later.
  4. Choose finish.
  5. Click Adjustment and finish.

 

I recommend consulting your accountant in creating an adjustment to make sure they can suggest and make changes to your reconciled reports.

 

Then you can proceed in reconciling your 2024 transactions.

 

Additionally, I'm also including these resources that will guide you in fixing the account balance discrepancy and running the reconciliation report:

 

 

I'll be available on this thread whenever you need additional assistance managing your bank transactions or anything else. Please feel free to provide more details.

2 replies

E
ErwinQAnswer
July 13, 2024

Hello there, Vabburi. I'm here to guide you on how you can reconcile your account in QuickBooks Online (QBO).

 

In QuickBooks Online,  in order to keep the balance accurate, you'll need to reconcile first the transactions from 2023 before we can proceed to 2024.

 

The off of clearing transaction is only applicable to QuickBooks Desktop (QBDT).

 

You have the option to reconcile the 2023 transactions by manually putting R so it will be removed on the reconciliation page.

 

I'll add a screenshot for visual reference.

 

You can also create an adjustment entry to force reconcile the account. To do that follow these steps:

 

  1. Go to the Gear icon.
  2. Select Reconciliation.
  3. Click the dropdown arrow beside Save for later.
  4. Choose finish.
  5. Click Adjustment and finish.

 

I recommend consulting your accountant in creating an adjustment to make sure they can suggest and make changes to your reconciled reports.

 

Then you can proceed in reconciling your 2024 transactions.

 

Additionally, I'm also including these resources that will guide you in fixing the account balance discrepancy and running the reconciliation report:

 

 

I'll be available on this thread whenever you need additional assistance managing your bank transactions or anything else. Please feel free to provide more details.

Rainflurry
Rainflurry
July 14, 2024

@vabburi-clarku-e 

 

"How can I eliminate all these 2023 entries now to perform 2024 reconciliation."

 

You can't just eliminate them.  This is double-entry accounting so every transaction shown on your reconciliation has another offsetting entry to either an income, expense, asset, liability or equity account.  To have an accurate 2024 starting bank balance, you need to work through 2023.  If you want to "eliminate" the 2023 entries, you will need to create an adjusting entry that increases (debits) the bank balance by $179,910.77 but you need to credit another account for a corresponding amount.  That just kicks the can down the road so to speak.  You can credit a reconciliation discrepancy expense account and use that, but that's a TEMPORARY fix and it will need to be adjusted from there.   

V
vabburi-clarku-eAuthor
July 18, 2024

@Rainflurry @ErwinQ  - Thanks both of you helping me solving this. I found no better approach than auto entry for reconciliation discrepancy for last year transactions. 

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