 QuickBooks Online 2024. Bank reconciliation month number one deposits. Get ready and some coffee because we get things done on schedule 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 the major financial statement reports as we do every time reports on the left in the favorites right click in the balance sheet to open link in a new tab right click in profit and loss to open link in a new tab and right click in the trial balance to open the link tabbing to the right the hamburger needs to be closed we're going to change the range 010124 tab 022924 tab let's do the drop down on the month by month and run it and then we'll tab to the right close up the hand buggy and then change the range 010124 tab 022924 tab want to see a month by month side by side once again refreshing the report tabbing to the right hamburger close another time range change 010124 tab 022924 tab and then dropping it down month by month run it let's go back to the balance sheet you will recall that we've been thinking about the bank reconciliation process in general noting that it's one of the major internal controls that every business should do large and small whether you use bank feeds or don't use bank feeds and we've note that the beginning bank reconciliation process has that beginning balance issue making it more difficult oftentimes than the following bank reconciliation so noting that we've noted that we're going to move forward with the normal bank reconciliation process starting with the deposit so we're going to go over here in our bank statement the bank statement has an ending balance of the 61 24185 our book balance has 88 81027 so now we're going to do the reconciliation process to do that let's go to the first tab go down to the transactions this is where I like to do it and then remember the bank transactions are over here we'll talk about bank feeds more in a future course or section they can help and be part of the reconciliation process but are not in of themselves the bank reconciliation let's go to the reconcile tab and we're choose we chose the checking account last time and started the reconciliation process if you haven't started it then you're going to have some beginning numbers to fill let me show you what those look like we're going to go into the resume the bank reconciliation and then if we have the edit info up top this is that beginning balance information or that beginning information we had zero for the beginning balance we noted that that's a problem because we had 30 000 over here so we're going to have an issue with that we're going to deal with that later we're just going to move forward for now 61 241 that's the ending balance that we pop we put in manually we just typed it in there and then the cutoff date 131 24 that's the cutoff date of our financial statement and then we had nothing that we're going to enter a transaction for these are kind of like we talked about before i don't like legacy things i don't think most people use them anymore because if you have the bank feeds you will have recorded them so i basically ignore this stuff and if i need to record something i will record it myself so let's go ahead and close it recalling that up top i'm going to uncheck everything down here we have then the comparison of the statement ending balance which we just typed in there and the cleared balance these two need to be exactly the same in order for the difference to be zero allowing us to properly reconcile without entering an entry an adjusting entry which you don't want to do because it'll really lower the quality of your bank reconciliation if you do that so so we noted that the that this cleared balance now is comprised of the beginning balance minus the payments and the deposits the beginning balance is a problem because it should be populated with the cleared balance on the bank statement due to it being there from the prior period it's not as we discussed before for multiple reasons one quick books just didn't put it in there because of the way we put the beginning balance on the books or something and two even if it was there it's that 25 000 instead of at the 30 000 so i'm going to deal with that later first i want to just think about the deposits now if we put the deposits in place i should get to an ending deposit number that should total what's on our bank statement and the deposits should be easy for most people because the general idea would be that if it's on the bank statement it should be on our books right because the bank statement usually is not going to be wrong if it's not on our books and it's on the bank statement it's likely that we're going to have to add it to our books if it's on our books however but not on the bank statement then it might be the case that it's still okay because it's an outstanding deposit even with electronic transfers if we make the deposit on our end it might not clear the bank for a few days so we could have some outstanding deposits that we know will clear because we can check the bank account after the cutoff date and see that they are outstanding if that is the case then they're going to be a reconciling outstanding item in the current period now a few things to note here sometimes people have problems with the deposit side of things because what happens is they're going to say okay what if you had 65 000 over here and then on our side we saw deposits that i'd have to check off three different things that add up to 65 000