 QuickBooks Online 2023. Bank reconciliation reports month number one. Get ready to start moving on up with QuickBooks Online. Here we are in our Get Great Guitars practice file. We started up in a prior presentation using the 30 day free trial. We also have open the free QuickBooks Online sample company. You can open the two at the same time by using Incognito. Support accounting instruction by clicking the link below, giving you a free month membership to all of the content on our website broken out by category, further broken out by course. Each course then organized in a logical, reasonable fashion, making it much more easy to find what you need than can be done on a YouTube page. We also include added resources, such as Excel practice problems, PDF files, and more like QuickBooks backup files when applicable. So once again, click the link below for a free month membership to our website and all the content on it. Or another browser. You can open Incognito if using Google Chrome by selecting the three dots in the browser and the Incognito window typing into the search engine, QuickBooks Online Test Drive. We're using the sample company to compare the accounting view, the view that the Get Great Guitars file is in and the business view, the one the sample company is in. You can toggle between the two by going to the cog up top, switch the view down below. We're gonna duplicate some reports to put some tabs to put reports in. Right click on the tab up top to duplicate it. Right click in the tab up top again to duplicate it again and then we'll tab to the middle. We're gonna go to the reports on the left. We're gonna open up one of the favorite reports, that being the balance sheet and if we were in the business view, by the way, the reports are located in the business overview and then the reports tab. We're then gonna tab to the right, open up the other favorite in the reports on the left. We want the profit and loss this time. We're gonna close up the hamburger and we'll change the range. 010123 tab 022823. I'd like to see it side by side month by month and so we'll do that with the month change and run it to refresh it. We've got Jan, we've got Feb, we've got the total tab to the middle, close up the buggy and then change the range again 010123 to 022823. I'm gonna see this in a month by month, side by side. Run it to refresh it. We've been focusing on the bank reconciliation for January. So we're trying to tie out this number, the 8864525 to what's on the bank statement, the 6124185. We went through the full process of doing it. We're finally gonna hit the reconciliation button now and see the actual reconciliation report. So let's do it. Let's go to the tab to the left with no further ado-do, no more do-do here. We're gonna do it. So we're gonna no further ado. Let's go down to the accounting on the left-hand side. And by the way, if you're in the other view, which is the business view, by the way, that this isn't the business view. If you were in the other view, this is the other view, it's under bookkeeping and then the reconcile tab. Okay, and then we're gonna just move on with the cash. Resume reconciling, this is what we have. Now just a quick recap. Remember that this is the reconciliation process. If you do this process, you can have more confidence that your financial statements are correct, but this is not actually the reconciliation report. That's what we wanna point out at this point in time. If you were asked for a report by an auditor or a tax preparer or something, they would want then a report, not like this page of this process that you did this, but by going through this process and doing it, even if you don't even look at the report, you have done a good internal control to the system. So quick recap, this is the ending balance that came directly from the statement. And then this is the cleared balance, which is the same number. The reason it's the same numbers because we just checked off everything in our books that's the same as on the statement, meaning if it's on the statement, it should be in our books somewhere. So the beginning balance, the addition, subtractions all match out here, here, here, and therefore there's no difference. Therefore, we're at exactly zero. If this is anything other than zero and you force a reconciliation, you can do so. But even if it's off by like a dollar, you're losing a huge amount of internal control because that dollar difference could be from multiple transactions. So we wanna be aware of that. This does not mean, of course, that the cleared balance is like now our book balance. The cleared balance is not our book balance because our book balance, as we can see, is still 88, 645. It still doesn't tie out to what's on the bank statement. It would not tie out unless we were constructing our books exactly from the bank statement information or the banking information possibly using bank feeds. Otherwise, we're probably gonna have outstanding items, timing differences, and we'll have a reconciling difference as we do here. What is that difference? That difference is the things that we didn't check off. So the things we didn't check off are the reconciling items that will get us from the cleared balance, which matches the bank statement balance to our book balance, which is on the balance sheet. And these items here, we wanna know about them and say, are we concerned with them as something that's are not legitimate transactions? If they're entered close to the end of the month and we can double check them in February to see if they cleared. If they cleared in February, then I'm not concerned with them so much as being incorrect transactions at that point. They cleared, that's fine. They're just gonna be the reconciling differences. And by tying that out exactly, I can see that all the transactions are more likely to be legitimate given that's that internal control. All right, hit the button, hit the green button. That's what we're here for. We wanna see you hit that green button. Let's do it, boom, green button, finish it. You reconciled this account, woohoo, to see the report. Let's say, okay, let's check out the report. So let's go then to the summary, information up top. And then we've got our reconciliation. If I go into the reconciliation, here is our report. Now the point is, notice that the layout of the report is it looks a little bit different than some of the other reports. And that's in part because this report is not constructed the same way as the other reports. The other reports are being constructed as we do the data input, as we enter these forms, like in a similar fashion as we have seen with the balance sheet. Even the subsidiary reports are still being constructed as we do the data input. This report is being constructed by us comparing our data input to the bank statement. And notice it can't be a report that can just change in the same way as another report, like a balance sheet report, because if I was to go back and delete a transaction that I did in the past, it would throw off the bank reconciliation, right? So this is a report that's really, it's kind of static in time. And that's one of the reasons that might draw up or be pulled up a little bit differently. Now they've kind of adjusted the look and feel of the report a little bit over time. So now they've got this kind of summary up top and then the details down below. So let's just recap what we have here. First, we've got the summary information. This is the statement beginning balance. This comes from the bank statement. Boom, just recapping the data. This is the checks and payments that have cleared the 111829, if we checked everything off as it should, that should also match the bank statement. These are the deposits that cleared. Once again, if we did it correctly, then generally that will match what is on the bank statement for all the increases to the bank statement. And then we have the statement ending balance, which is the ending balance on the bank statement. So this is just recapping what we already knew on the bank statement. So that's not really what I would call the bank reconciliation. The bank reconciliation starts in essence here at the statement balance. And then we've got the difference between that and the register. So here's the unclear transactions. That's really what we're looking for to get us to the register balance. So obviously the 61-241-85, if I pull up the trusty calculator to do some trusty calculations and we're gonna say, oh, I squished the calculator. That's too squished. It's gonna be 61-241.85 plus 27403.4. That gets us to the 88-645-25. There's the 88-645-25 on the balance sheet. So that's the reconciliation. So this little piece right here, that's the whole reconciliation to me. However, I'm missing a fundamental component, which is this component. It's all squished together in one number. What I want to know is what makes up that 27403-40. I mean, if I was an auditor, for example, and you gave me this summary component and that's all you gave me, then it's like, oh, great, what did you do? You told me, yeah, this is the balance on the bank statement and this is the balance on the books, which I can see. And then you just said the difference is made up by 27403-40, great, you subtracted the two. You're not telling me anything, right? What are those differences? I need to be able to see what those differences are and that's why you need to detail down below. This down here, unclear transactions after. This is not really necessary for the bank reconciliation as of 131-23. So again, it's kind of, they give you a lot more information than you really need. These three numbers are what you need and then you need the detail for that 27403-40. So down below, you've got the detail. Checks and payments that have cleared. This is just gonna basically match what has cleared on the bank statement. So that's not really what we're looking for so much because we already have it, it's kind of redundant. These are the deposits that have cleared. Again, that's on the bank statement. So it's kind of redundant, so okay, that's good. And then we have the unclear checks and payments. This is what we're looking for. This is gonna be the items that we have not yet cleared. They're in our books, but they're not in the system. Again, I can double check. Even though these didn't clear in January, they might clear in February and because we did the bank reconciliation sometime in March most likely, because we didn't get the bank statement until sometime in March, we can then see if they did clear and if they did clear, then I have good verification that these are legitimate timing different transactions. And then down here, we've got the unclear deposit. That's the deposit side that wasn't cleared. So that means that this 3407250-6669.1 is the 27403. There's the difference. So it's a pretty, still pretty long kind of convoluted report to get to the area that we want to get to, but that's the general idea on the report. Now note that you might wanna print out these reports if you have these timing differences because then it's nice to have a hard copy because if someone went in here and they deleted a check or they deleted one of the unclear transactions or something like that, then it's gonna mess up your bookkeeping system. That's why you would wanna close the books after you've done the bank reconciliation or something like that or be very careful of adjusting anything after doing the bank reconciliation to a prior period. So sometimes if you have a hard copy, then you can go back in and fix things. It's the bank wrecks are one of those reports that if you have multiple bank wrecks, sometimes it's harder to go back into the past and pull the prior bank wrecks up. And so we'll see how they store the bank wrecks when we get to, after we do the second bank reconciliation that we'll do. Now, notice in here where the bank wrecks are located. So I'm not under the reports right now. I'm in accounting and then I'm in the, so we have the chart of accounts. We've got the reconciliation and then I'm in the bank register and the reconciliation summary. I believe you can find the reconciliation and the reports as well. So if I was to go to the dropdown and go to the reports on the left-hand side and you could type in bank reconciliation, I think it's just reconciliation. They call reconciliation reports or I believe they're down here. I think they put them under the accounting for your accountant reports. So let's just check them out. For my accountant, you've got your reconciliation reports. So this is another way you can go in here and then you've got your dropdown up top. You've got your cash accounts and so on. That's the one we're looking at. And then here is the reports which you can view the report thusly. Okay, so we haven't made any changes to the financials yet. So at this point, so we're not gonna print any trial balance and we'll continue with the second month of the reconciliations in future presentations.