 QuickBooks Online 2024 Bank Reconciliation Month 1 Overview. Get ready and some coffee because we're going to be on top with QuickBooks Online 2024. Here we are in our Geekdrick 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 we're in the favorites right clicking on that balance sheet to open a link in a new tab right clicking the profit and loss opening the link in the new tab and with the trial balance same thing for the trustee TB tab and to the right closing that hamburger and we will change the range going from 010124 tab 022924 making it month by month broken out and running the report tabbing to the right closing the hamburger and the changing of the ranging will happen again in 010124 tab 022924 and then we're going to say that we want this on a month by month breakout refresh and then tab to the right one more time hamburger close and change that range 010124 tab 022924 tab and then months run it ok let's go back to the balance sheet last time we gave an overview of the importance of the bank reconciliation process something that every business should do large small whether you have bank feeds or do not have bank feeds you should be doing part of the bank reconciliation or doing reconciliation it being the second biggest internal control allowing us some assurity that the financial statements are reported correctly second only to the double entry accounting system itself that we're forced to use when using the QuickBooks accounting software so now we want to think about the process of doing the bank reconciliation starting with the first month of reconciliation oftentimes having more difficulties than following months that's why we're going to do two months of bank reconciliation we'll talk about some of the difficulties that often come up with the first month of bank reconciliation and then in the second month we'll have a process which will hopefully be a little bit easier representing the normal process than going forward from that time so we note that the reconciliation is basically going to be tying out matching what's on our books we're looking at the cutoff date now at the end of January the first month which our books say is 88, 810, 27 and we're comparing that to what's on the bank side of things and this is our mock bank reconciliation which typically has the beginning balances the additions, subtractions and then the ending balance the bank says that we have 61, 241, 85 as of that same point in time the end of January it's not the same number you may have noticed now that will often be the case if we have a full service accounting system in which case we're putting our books in the system on our side not relying completely on the bank to do so and then using the bank to double check possibly with the help and the use of the bank feeds if we're building our books directly from the bank feeds then it may well be the case that our balance ties at any given time it's to what is on the bank side of things but you can only do that in certain cases and even then you'd still want to do the reconciliation it would just be really easy in that case so we're going to say what is the difference between the two we saw that they're hopefully going to be outstanding checks and deposits or things that we have to basically record on our side so in other words we're going to tick and tie everything from the bank to our side if something's on the bank statement but not on our books then the bank's probably correct usually is unless the bank made an error in which case we'll have to deal with that but usually the bank is correct we're going to have to add that to our side if something is on our side but not on the books side of things then it might be fine because it might be the case that those are outstanding checks and outstanding deposits which are the reconciling things the difference between the bank balance and the book balance where we run into a problem with the first reconciliation is often this beginning balance so we have to have a cleared beginning balance that is the same so that we can tick everything off as we go and if I go over to our books over here you will recall that we started entering our data as of the end of 2023 December 2023 so if I go into this checking account for example and I was to go into this as of 123124 123123 I should say and then look at this we put the beginning balance on the books at $25,000 we had to do that because when we entered our beginning balances were imagined from the prior accounting system that was on our financial statement as of this point in time so we had to put it on the books at $25,000 because we had to reconcile our debits equally in our credits when we put the beginning balances in place but the bank says that the beginning balance is $30,000 so that's going to cause a problem with our bank reconciliation possibly because we don't have a starting point that is the same so in other words if I go back on over here let's check that out from a bank rec standpoint go into the first tab and we go into the we could go into the transactions and then here's our bank transactions this is where the bank feeds would flow through bank feeds as we'll look at in future course or section could help us with the reconciliation but that isn't the actual reconciliation the reconciliation is over here in this tab and it says match the books to the bank records, connect accounts are easier to reconcile so it's obviously advertising the connection to the bank keep yourself on track find holes in your accounting get things tidy for tax time so let's go ahead and get