 QuickBooks Online 2022 bank reconciliation month number two deposits. Get ready because it's go time with QuickBooks Online 2022. Here we are in our get great guitars practice file we set up with a 30 day free trial holding down control scrolling up a bit to get to the one to 5% currently in the home page otherwise known as the get things done page review if you want to change to the accounting view you can do by going to the cog up top switch to the accounting view down below we will be toggling back and forth between the two views either here or by jumping over to the sample company file currently in the accounting view going back to the get great guitars opening up a couple tabs to put reports in by right clicking on the tab up top duplicating that tab going back to the tab to the left right clicking on it again duplicating another time as that is thinking let's see where the reports are located in the accounting view over here in the sample company they're in the reports on the left-hand side that's where the whole that's where the reports live they spend their whole life there unless QuickBooks tries to change where their home is in any case over here in the other view they change their home it's in the business overview under that other place so we're going to then close up the hamburger going to close this thing that they keep on giving me up here get out of here and then we're going to open up the balance sheet let's open up the big balance sheet do the range change up top from 0 1 0 1 this time I'm going to take this to 0 22 that's the same didn't do anything different there 0 2 28 22 the end of the second month of operations that's where the new stuff is happening let's run it and then go tap to the right tap to the right business overview on the left reports close on the hamburger profit and loss P and L the two faves going up top range in the changing from 0 1 0 1 2 2 to 0 2 28 22 let's do our month breakout over here to switch things up to the month by month and run it so we can see the side by side January February the Jan the Feb the tote we're working on Feb at this point in time but mainly focusing on the balance sheet account of cash so we did the bank reconciliation for month one last time which was a little bit more difficult often is in practice because you often have that beginning balance kind of issue because you often have transactions that you put into the system before you started putting the information into QuickBooks we talked about that last time after that point then the reconciliation should be easier so this reconciliation process should reflect the process going forward for the rest of your bank reconciliation kind of experience but it's also a good tool to see the second month because we'll clearly be able to see the outstanding checks that happened in month one the one outstanding checks and deposits the ones that didn't clear that now are going to have an impact in month two most likely clearing in month two so we're going to be reconciling here as of the cutoff date of February 28 2022 this is what is in our books it's not going to typically tie out to what is on the bank statement due to the fact that we're gonna have reconciling items outstanding checks and deposits if we're recording our information separately then what is recording from the bank in other words if we're dependent for example on bank feeds and we're just recording our books simply from bank feeds instead of integrating the bank feeds into our accounting system that might be a little bit more complex than that possibly because it's an accrual system or one in which we want to be tracking the transactions in our account using like register sales receipt type of transactions then you're gonna have those reconciling items if you were just to use the bank feeds and build your books from the bank feeds you wouldn't have those kind of reconciling items but you would still want to reconcile to make sure that you haven't admitted anything you didn't get the bank feed transaction for whatever reason and or you haven't entered things twice and doubling up on the bank feed transactions okay let's go on over to the bank statement here here's the bank statement for the month of Feb so it looks similar but it's starting out here you can see at the 61 24185 if I jump back on over to January that was the ending balance I know that number I've seen that number before it was 61 24185 ending balance at the end of Feb beginning balance at the beginning of January well how does that relate to our books in QuickBooks it doesn't tie out of course to what is on the balance sheet here but it does tie out to the cleared balance that we put in place which we can track with the bank reconciliation little widget thing on the left hand side so let's go to the tab to the left and let's do another reconciliation which is in the bookkeeping area going into the bookkeeping if you were in the accounting view by the way it would be located under the accounting tab and then reconciliation here it's under bookkeeping and then reconcile reconcile and then close the hamburger and so now I'm inside of the next reconciliation you can you got this little path up top so if I went to the bank register for example that hold up let me open up the hamburger again go back down to the bookkeeping and then I'm going to go into the reconcile and so there's our reconciling items closing up the hamburger you also have the summary items on the right hand side and that's where you could go and see the last bank reconciliation here so now I'm going to go back and toggle that back on over to reconcile and do the next reconciliation which is still in the cash account in essence the checking account we've got the beginning balance the 61 24185 notice I can't change that it's it's static in there that's where our problem was in the beginning balance for month one that we don't have a problem any longer that problem is gone 61 24185 no problem then we're going to have the ending balance 101 590 05 this is going to be 101 1590 05 is that right 101 590 05 101 590 05 yeah it's right you're right yeah you're right so it's going to be for the end of Feb so I'm going to go into Feb I'm working in the future in my problem hopefully that won't cause a problem and then we have the items down below the service charges and the interest typical items that might be on the bank statement not on our books that we could add as we go in here but I don't like doing that because I like to basically it kind of confuses me I'd like to take and tie everything off and then enter those transactions directly into the register so that's what I'm going to do so I'm going to start the reconciliation process let us begin so here we have the reconciliation stuff up top like we saw in month one we've got the ending balance and that should tie out to the ending balance here that's going to be the not the 101 590 for the bank statement then we have the subtraction of the beginning balance so so we're going to basically match out our reconciled items to what is on the bank statement we're starting out with the beginning balance so if I go on back on over here this number basically works that reconciles right there that's great that's where the problem was with month one don't have that problem in month two so it'll be easier then we have the payments and the deposits we don't haven't checked anything off these will be added as we check stuff off on down below that means we currently have a difference between the cleared balance and the statement ending balance of this amount that we want to get down to zero to reconcile noting however that the cleared balance getting down to zero is not the bank reconciliation report because the stuff that we don't clear click off are still legitimate transactions those are simply unclear that's what QuickBooks will make the bank reconciliation based off of so let's close up this little carrot so we have a little bit more room down here we went over the filters last time the main filters you're going to be looking at are the payments and the deposits to kind of sort your items down below you also might sort by reference number for example instead of date but date would probably be the most common use of the sort team we're going to go into the deposits and just tick and tie off the deposits remembering that if it's on our bank statement if it's on the bank statement but not on our books then we're most likely going to have to add it to our books if it's on our books but not on the bank statement then it could possibly be an outstanding item and and it could still be a legitimate item therefore it's easier to think in your mind that you're going from the bank statement to the books because that is if it's on the bank statement it should be on the books everything on the bank statement will be on the books so it's a little bit easier to go and think about it in your mind that way also just remember that the deposits are comprised of the bank data has the date and it has the amount at the minimum and so the date should be more relevant with the deposits because you probably made the deposits either by depositing directly into the bank or by basically electronic transfers therefore the date should be pretty close to when it got processed and when you entered the actual deposit so that date is going to be more relevant than possibly if you were using checks for example where the date it cleared could be much different than the date that you put the money in if you have electronic transfers as opposed to just depositing say cash for example then you could have a memo as well that could give you more information about like the customer for example that could make things a little bit easier to take and tie as well and these amounts should tie into what is on your side of the books if they don't if you have to tie things together if you have to add multiple deposits on your books to match up what is on the bank statement that's an indication that you are not appropriately using the clearing account of undeposited funds or deposits or you know the things to be deposited whatever they call the clearing account now in other words if you're receiving the payments here or you have to create the sales receipts here and you're basically putting them directly into the checking account at this point in time that can work but only if the the you're not basically when you when the actual money hits the bank it's not being grouped in with multiple sales receipts and multiple received payments at the same time which it would be if you're for example collecting cash and then depositing the cash physically into the bank from multiple sales transactions or if you have credit cards for example which will most likely group multiple sales transactions and deposit them into your checking account in one lump sum if that is the case then you want to use the clearing account you want to figure out some system possibly using the clearing account on deposited funds or deposits cash to be deposited or what do they call it in order to then group your deposits in your books so that when they hit the checking account they're grouped in the same format making the bank reconciliation process a lot easier and so then it should be a really easy process if that all lines up here and we could just say okay I'm going to look for the 3417250 and I'm going to go back on over here and say okay there it is 34347250 check it off check it out check it off and maybe I can get rid of this memo line let's see I can also hit the drop down and say I don't really need the memo line does that make it easier to look at a little bit a little bit maybe I can scroll up a little bit okay and so then I'm going to go down I'm going to go down here again and say how about this is the wrong one I'm on February let's make that one yellow let's yellow rise it it's been yellow-rised 12 1250 121250 going back on over to 12 1250 check it off there it is and then yellow-rised it yellow-rised 450770 also note that the dates are on 2 1 and 2 5 when it cleared here and if I go on over to the bank statement they we wrote them on 125 so this last one this one was the one we wrote in January which was unclear as of January it wasn't part of the cleared items it cleared in February so it was part of the balance in our balance sheet as of January and that's why it was one of the reconciling items in January so if I went to the reconciling report just real quick this was the reconciliation we did and I was to go and say look let's see the outstanding deposits outstanding deposits was right there there's the 347250 which was a reconciling item last period and this period it clears that's what we expect to happen this one was written of course in February okay let's go back on over and say the next one's 450870 450870 there it is check it off Roger that it's been ticked off be careful of that one it's ticked off and then we're going to say 228750 750 so 750 this one was written on where we put it in place on 225 it cleared 228 you would expect to be like kind of within three days and if we got our dates wrong on the practice problem that just it should be around three days you would think right so 400 228 228 400 one more there it is check it off it's ticked off be careful that one's ticked off I'm jumping in from the future here just to note that we ticked off the wrong item we ticked off the 200 instead of the 400 we will figure this out and the following presentation after we do the payments so at this point in time you can either take off the proper amount or you could follow along with us and we'll be off by basically the that $200 until we reconcile that or find that when we get to towards the end of the bank reconciliation next time okay so now we've got those in place and now we've got some items that haven't been ticked off that are still in that that are over here and that's okay because we would expect them to then clear in the following month so so it's the same thing that we saw in January except now we can get a better example of how these unclear items are happening on both sides of the cutoff the January cutoff or at the beginning of the month I mean February 1st cutoff or January 31st cutoff is this one which was outstanding unclear before reconciling item which cleared now in the current period and then we have these two items which are going to be reconciling items at the cutoff at the end of the period to 28 February 28 in this case two checks that have been written or not checks to deposits that have been made which have not cleared and so we're going to be able to check them by seeing if they cleared in March which we can do now given the fact that if we're reconciling for February we will be doing that process sometime in March so I can look at the bank statement to see if they cleared if they have great they're just going to be a reconciling item when QuickBooks creates the bank reconciliation when we finally hit the green button up top saying we're done it will then reconcile those items as part of the difference between what's on our books here and what's on the bank statement in terms of the ending balance okay I'm going to zoom back out a little bit that's where we stand at this point in time I'm going to save it for later and we'll go on to the decreases next time it's going to be great so don't don't miss it