 QuickBooks Online 2023 Bank Reconciliation Bank Feeds After The First Month Get Ready To Start Moving On Up With QuickBooks Online 2023 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. Here we are in our bank feeds 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. If you want the two open at the same time, we suggest incognito or another browser to open the sample company. You can open an incognito window if using Google Chrome by selecting the three dots in the browser incognito window typing into the search engine, QuickBooks Online test drive. We're using the sample company to compare the accounting view, the one the bank feeds practice file is in and the book view or the business view, the one the sample company is in. You can toggle between the two views by going to the cog up top and then switch the view on down below. We're going to duplicate some tabs to put reports in right click in the tab up top and duplicating it right click in the tab up top and duplicating it back to the middle duplicate a tab down to the reports on the left opening up one of the favorites that being the balance sheet by the way if you're in the business view the reports are located in the business overview on the left hand side and then the reports back on over tab into the right. We're going to the reports on the left this time opening up the P to the L the profit and the loss. Let's close up the hand boogie and change that range we're going to go from let's do it this way this time I'm switching it up a bit let's go from 0801 to to tab to let's go to 1131 to to tab I'm going to 1130 there's only 30 days in November I should know that my birthday is in November I'm going to hit the drop down we're going to say this is going to be in months and then let's run it so now we've got our month by month break out up through November I don't really need November let's just go through October let's go 1031 to to there's 31 days in October okay and then let's go to the middle tab balance sheet same thing closing burger changing ranging going from 0801 to to tab to 1031 to to and drop down to the months by month running it so we got the side by side on the month by month and we did the reconciliation last time for August. So now our Indian balance for August should tie out so the September if we constructed our bank's information our financial statements directly from the bank feeds it should be very easy to do the September bank reconciliation so just a recap now so the bank statement should reconcile for the last period so if I go back to my bank statement over here this is for August now the Indian balance sixty thousand seven nineteen ninety six matches what we have here remember that will only happen if you're actually constructing your books from the bank feeds as opposed to constructing your books and then checking them with the bank feeds and the bank reconciliation in other words we don't have any reconciling items we don't have any outstanding checks or deposits so even though that's the case you still might have that beginning balance issue we talked about last time and you still want to make sure that you do the reconciliation so that you know how to do it if something gets out of whack remember that if there is a difference then you can go to the report so if I go to the tab to the left the bank reconciliation reports are a little bit different than the other reports they're located somewhere different but you can find them in the reports if you wanted to go to the reports to find them and then you could go into the reconcile reports so don't say bank wreck you just say reconciliation reports because I guess that's because there's credit cards to and it actually takes you to whether housed which is down here under the accounting tab and then in the history and then we're in the checking account so that you can see the prior bank reconciliation if there was any reconciling item reconciling items they would be in between here that'd be the major focus of the bank wreck so there aren't any so it should be quite easy then going forward so so that means in the following month now our beginning balance situation should be taken care of and so when I go to the following month my my beginning balance on the bank statement is the same as the Indian balance for the prior period so I don't have that beginning balance issue and if I constructed my books from the actual bank feeds then these two should tie out automatically making my Indian balance the same 97 648 12 should tie out to 97 648 12 here so you might say why am I going to reconcile at all you don't really have to because you kind of did already by constructing your books from the bank statement that means of course that your stuff ties out to the bank statement it's not as big an internal control as if you entered the stuff on your side and then verified it to the bank account because that gives you that double check so we don't better double check it Colonel we're kind of losing that double check when constructing our books from the bank statements but it's easier and if we can do that in certain situations a lot of small-cump businesses would rather do that if it's faster right so that's the general idea but if something gets out of whack you're gonna still have to reconcile meaning if you double entered something somehow if the bank feeds entered something twice somehow or if they didn't include something the bank feeds got disconnected in some way then you're gonna have to fix it with the reconciliation process so you want to know how to do that and it's useful just to go through the reconciliation and finalize it so that you get just in a habit of of doing that it should be quite easy so how do we do that we go to the tab left and go to the accounting tab on down below reconcile if you're in the business view by the way where is it located it's under the bookkeeping most of the stuff seems to be into the bookkeeping and then experts area so you can only reconcile if you're an expert you don't really have to be an expert to reconcile it's really easy you can be a novice and reconcile that's kind of deceptive the way it does that so everybody should reconcile it's just it's something for everyone so in any case down here we're picking the checking account we're in the beginning balance should match up now we don't have that beginning balance issue if it doesn't match up but then you're prior and you didn't a prior bank reconciliation then the prior bank reconciliation was messed up so you might want to go back and fix that bank reconciliation the way to do that is you have to actually basically delete the prior bank reconciliation and fix the last one as though you're beginning balance rules more but once you're in line once you're in alignment then it should be easy going forward I can just say all right the ending balance is just going to be what's here see if I can do it type it right this time 9764812 9764812 is that right it's easier with two screens you do less crazy switching numbers stuff up when you have two screens but that's okay I don't need two screens because my memory is like a steel trap that was like one two three four five seven numbers less I got less like a phone number which nobody can remember anymore and I remembered it for like a second with no problem so in any case this is at the end of September of 2022 right alright start the recording of it so once again we've got the the summary information this is what we typed in this is the cleared balance they match automatically and the cleared balance is consisting of the beginning balance plus what we checked off as payments plus what we checked off as deposits which summarizes basically the top part of bank statement without all the detail down below the reason does that and once again it won't let me check these off it's so so very annoying this has just been happening to me so this is just a little glitchy right now I'm sure they'll fix it but I just would like to uh express my annoyance annoyance so so everybody knows might want to I don't know any case but if you want to edit the data up top there's your edit so you can edit the beginning balance up top and now everything is checked off automatically because it came through with the bank feeds because we constructed our books from the bank feed so it should be that easy to go in and fix it remember that this thing represents that they were added from the bank feeds and everything is connected up you can sort them by payments you can sort them by deposits if this was not at zero then what would you have to do I would sort by deposits and then payments or payments and then deposits and then you'd have to take and tie everything off over here and say okay if it's on the bank statement it should be on our books so I'm always going to go from the bank statement to the books and I'm going to go through all this detail and just check it all off and then I'll see what the difference is if there's something on the bank statement that's not on our books it's likely we're going to have to add it to our books because something happened maybe the bank feeds didn't pick it up maybe there was a glitch in the system and the bank feed didn't come through for whatever reason that's why we're doing this that's why we're checking it out and then we'll add it we'll fix it as we go if there's something on our books that's not on the bank statement then if we constructed our books from the bank statement it's likely that we got we entered two things right we got two bank feeds came in for the same thing maybe there's a duplicate or if we constructed our books separately from the bank possibly writing checks for example or entering the transaction first because we had to we had to do our deposits through through a through a cruel system or something then it's possible that that it's a timing difference meaning we were correct it's not like we're wrong just because it wasn't on the bank statement because in that case we knew about it first because there are our books we know about the transaction before the bank knew about it we did it that's what the reconciling item is so when you do the reconciliation report it will be built from this bank reconciliation bank reconciling page this is a bank reconciling page not the bank reconciliation the bank reconciliation will show the difference between the statement balance and the book balance which is not the same as the cleared balance the cleared balance is in essence the statement balance once we've checked everything off that but but in this case it is the book balance because we constructed our books from the bank but if we had outstanding checks and deposits it would not be that now remember if there's anything but zero here then you might say it's only off by like five dollars it's only off by like twenty dollars i don't even care twenty dollars whatever but that it's not just the twenty dollars it's not it's not just the twenty dollars because you're not just checking the ending balance okay okay what you're because that twenty dollars could be like a result of like a hundred deposits and like a thousand checks that just net it out to twenty dollars so now you you're it's not only the ending balance is off you can fix it by like putting the journal entry in but like all the other stuff from the other side of the transactions in the double entry accounting system will be all messed up haven't messed up yet you know so you what i don't care if it's i you know i don't even care if it's like under a dollar you should fit you could you could fix it because you could just go down here and check it off okay so just fix it okay before you before you go forward so in the case let's finish let's finish it up here and then we're gonna go okay so now we're back in our reconciliation if you want to look at the reports we saw how to get there before you could go to reports but it's also in the history information this is the history of the reckons of the reconciliations so we've got the last times ones here this time's one here this is the actual bank reconciliation report when someone asks for a bank reconciliation report you don't show them that reconciling screen you don't say yeah i did that screen and the green zero went down to zero no you got to give them a report reconciling it's reconciling the difference between the book the bank statement that 97 648 12 and what's on the books what's on the register which is the 97 648 12 but it's the same that's right that means it's going to be a very boring reconciliation because this is basically just the bank statement again because we checked it all off these numbers should tie out to these numbers and then and then that ties out to the same thing on our books because we don't have any difference we don't have any difference because we built our books from the bank statement that's why it's going to be quite easy to do but still something we should do as the added internal control making sure that everything is tied out making sure that we haven't entered anything twice or missed something and making sure that if our balance gets out of balance out of whack books not matching the bank statement at some point in the future we know how to fix it you do the you do the bank reconciliations so that's that in future presentations we'll take a look and drill down on the reports a little bit more and just see what we have constructed mainly from entering the data from the bank feeds as we go so we'll do kind of an audit thing going from the end result drilling back down to the source documents that weren't data inputted from the bank information with the use of bank feeds