 QuickBooks Online 2024 Bank Reconciliation Opening Balance Problem Get ready and some coffee because we're getting the books on track with QuickBooks Online 2024 Here we are in our get great guitars 2024 QuickBooks Online sample company file we set up in a prior presentation Opening up the major financial statement reports like we do every time the reports on the left hand side and the favorites right click in that balance sheet to open a link in a new tab right click in the P&L profit and loss to open a link in a new tab same with the trustee TB trial balance we will tab to the right close up the hamburger and change that range up top going from 010124 tab 022924 tab let's do this on a month by month breakout and run it then we'll tab to the right closing the hamburger changing the range 010124 tab 022924 tab selecting the drop down months and run it and then we'll tab to the right close the hamburger change the range 010124 tab 022924 tab drop down and months let's run it and let's go back to the balance sheet we're now continuing on with the bank reconciliation process for the first month that being January we have this beginning balance issue that we're going to address now so note that the reconciliation is basically taken what we have currently on the books 8864527 as of January and reconciling it to what is on the bank side of things on the bank side of things we have the 6124185 the difference between the two should be simply outstanding items checks and deposits that we know on our side which are not on the bank side but we have this beginning balance issue so let's go back into the reconciliation and recap that issue so we're going to go down to the transactions we're in the reconcile tab we're going to resume the reconciling that we started in a prior presentation and the edit info we have the beginning balance that's part of an our issue it's 0 here it's 30,000 over here so that's an issue and then we plugged in the 6124185 we just put the ending balance on the bank statement that's the normal process as of the cutoff date 13124 we didn't put anything down below in these items we have the recap up top the statement ending balance that's just what we typed in from the bank statement as of the cutoff January 31 we have the clear balance which is consisting of this formula and this formula should match the summary that's basically on the bank statement beginning balance plus additions minus subtractions so you can see the beginning balance is a problem with the 30,000 the additions that we have the payments that we have our 106 so let's take a look at 106829 minus what we have over here which is the 11829 and we have a difference of 5,000 so we have a bit of an issue on that one and then the deposits are at 1687085 that should match what we're over here let me do that one more time we're at where did I go where we're at the deposit should be 1467085 so over here we're at the deposits 168 that's because I have this checked off let me uncheck that 1437085 and then we're at 1437085 okay so we have an issue between the payments and the beginning balance so note that this beginning balance problem really just means that we didn't get this in the system as kind of the beginning balance part but it's still showing up here as our beginning balance that we put into the system which was 25,000 instead of 30,000 so if this was 30,000 then all what I could do is check it off and just say okay this beginning balance is just going to be included here and it'll be part of the deposits and I'll be okay with that I'll note that in my first bank reconciliation and be able to move forward but even doing that I still have a problem because this 25,000 is not 30,000 it should be the 30,000 which is the beginning balance over here why is it not 30,000 well because we pulled in this 25,000 from the prior accounting system which had 25,000 on the balance sheet so we had to put 25,000 in place because that's the thing that we needed to be in balance to bring over the books what's the difference between the 25,000 and the 30,000 well it's going to be the outstanding items you would think as of the prior bank reconciliation date which in this case is December 31, 2023 so in other words there were outstanding checks prior to that point in time and that's why we also have a difference between these cleared items we couldn't find these cleared items on our bank rec in our books and the general rule is if it's on the bank side it should be on our book side or we should be adding it but this beginning balance has a special issue because these checks weren't actually written in January they were written in December the prior period so that's going to be the issue the 25,000 that we put on top here is representing