 QuickBooks Online 2022. Credit card reconciliation month number one. Get ready because it's go time with QuickBooks Online 2022. Here we are in our bank feed practice file. We set up with a 30-day free trial holding down control, scrolling up a bit to get to the 125%. We're currently in the home page otherwise no one is to get things done. Page the business view as compared to the accounting view. You could change to the accounting view by going up to the cog up top, switch to the accounting view down below. We will be toggling back and forth between the two views either here or by jumping to the sample company file currently in the accounting view. Back to the bank feed practice file. We're going to open up a couple tabs to put reports in by right clicking the tab up top and duplicating it. Back to the tab to the left right click again and duplicates again as that is thinking. We're gonna jump on over to the sample company file to locate where the reports are located in the accountant view which is on the left-hand side under reports. If we go back on over to the business view in the bank feed practice file second tab we're then going to be in the business overview section and then in reports closing up the hand boogie. We're gonna open up some reported. What's it called again? What's that report? The balance sheet. I use it so rarely. Sometimes I forget the name of it but there it is the 010121 to 12th. Actually let's cut this off as of 09321 because that's gonna be our cutoff date for our first account for the reconciliation of the credit cards. Let's run that as is and then actually let's do it this way. Now let's keep it there. We're going to the tab to the right. We'll go into the business overview and then we'll go into the reports again close up the hand boogie and then go down to the profit and loss the P and L the income statement ranging in the changing 010121 09321 and run it. Okay so there we have the income statement let's go back to the first tab or the second tab we're gonna do a bank reconciliation or a credit card reconciliation for the credit card. Now when you think about this reconciliation process you probably think of it first for the bank accounts but you could do a similar bank reconciliation for the credit cards. Many people don't think of it as much with the credit cards because the credit cards unlike the bank on the bank you still could have some outstanding transactions outstanding deposits and checks and many people will not be completely reliant on the bank to construct the the data within the system. On the credit cards many small businesses will basically be reliant on the financial institution to draw in all the data that we're going to be using to construct our financial statements balance sheet and income statement from the financial institution. Therefore we're going to not have any outstanding items like like the outstanding transactions in there as readily although the payment could still be kind of outstanding if we make the payment so you could still want to do the reconciliation for it but so that's why people might so that means that the balance that's actually in your system is more likely to just tie out to the balance that's going to be on the bank statements even if you're not doing the reconciliation because there may not be any outstanding type of items except for that payment that you might be making but it's still a good process to do the bank reconciliation process and if you're in a company that is recording the transactions first like a full service bookkeeping system would even on the credit card side of things many times small businesses don't do that because it's electronic transfer but larger businesses are more likely to because then you have that internal control if you were to record it on your end and then verify it with the reconciliation could result then in some of those timing differences which you would want to have reconciliations for note that we have this negative number here that's weird right because that would mean that they owe us money how did that happen it happened in part because we didn't put the beginning balance in place into the system that's the same problem we're going to see with the bank statements we'll do it on the bank statements as well but when you first put the information into the system then we have to put the detail into the system QuickBooks is not the type of software that's just going to pick up the ending balance because then you don't get the detail you don't get the income statement QuickBooks wants to get the detail in place so you can record what happened given you the income statement and being able to drill down on the source documents and that means that if there was detail before the transactions that you pulled in we've got to add that to the system generally so let's go back on over and say our reconciliation let's go to the first tab tab number one and then we're going to find the reconciling stuff which under the accountant view is under the bookkeeping and then reconcile down below if you were in the business view it would be under the accounting I believe on the left hand side and then reconcile second tab up top so then we're going to be in the reconcile and let's go ahead and get started match books to the bank records let's do it and then it gives you your thing here and I'll say maybe later on this one maybe later QuickBooks not right now and then we're looking for the credit card so the credit card that's the one we want with the reconciliation and then the beginning balance notice the beginning balance is zero that's a problem because we need the beginning balance there so we could when you first enter the transactions you could try to put this into the beginning balance or we could just put it into the register as long as it's something that we can check off and the first in the first reconciliation then it'll be fine then the beginning balance will be good going forward so what I'm going to do then is I'm going to go up top I'm going to right click on the tab up top duplicate it and let's go into the register and add that beginning balance let's put it in place just manually into the register going into the bookkeeping on the left hand side to do so into the chart of accounts if you were in the other view by the way it would be under accounting and then the chart of accounts to get into that chart of accounts closing up the hand boogie let's find that on that credit card which is right there I found it I found it and then we're going to go into the register this is not the check register this is the credit card register and we want it then to be to be going up or having a charge in this case a charge for that beginning balance I'm going to hit the drop down right here and say let's make that just like a normal like an expense type of form let's do it because that's the normal form to be used and this is going to be let's make it as of 090121 now oftentimes if you were to start a new bookkeeping system you would want to do it by the beginning of the year and probably possibly have your prior bookkeeping system in the prior year therefore possibly in January you would be running this but this is just going to be an example problem here so we have a couple of months that we're going to be dealing with but note that when you put your beginning balances in generally you would like to put the beginning balances in the prior period and or put them to equity so they're not going to be hitting the income statement so won't get into that too detailed now we're going to say memo this is the beginning balance and it's going to be a charge of $1,000 now the other side where's the charge go to do I have to go to all my prior credit card statements and know where the charges were that were outstanding and whatnot and how much I paid and so forth no because we're going to basically assume that that's in the prior accounting system and then and they were if they were going to be income accounts they would have rolled into the equity account the equity account of retained earnings so I'm going to put this beginning balance directly into retained earnings at this point and just record the activity that is happening happening in the current period so I'm going to put it into retained earnings it might give me a warning saying that's funny that's unusual that's weird it is but it's a beginning balance thing that's why we're doing it so we're going to say save it save it and there we have it it's been recorded let's go up to the second tab balance sheet and we can run it run nine and scroll down and say what happened there there we have it in the credit card credit cards positive now that makes some sense there's the one thousand dollars that looks good the other side in retained earnings retained earnings in the in the online version you can't drill down on a knowing but that's the way it is you can still see the detail though by running a GL report just to show you how that works I'm going to right-click on the tab to the right duplicate that tab let's find ourselves a GL report so we can see that what's happening in the retained earnings we can do that by going to the reports on the left-hand side and I'm going to look for the general ledger give me that G to the L report and then range change up top from 0101 to 1231 to 1 and run it and then if I go down to the to the the account of retained earnings there it is retained earnings and we've got then then that amount that we just put into the retained earnings right here the expense of the one thousand dollars so you can't see the detail in the retained earnings by doing that in the second reconciliation we won't have to do that anymore it's only going to be needed on the first one to get that big beginning balance in place let's go back to the first tab and continue so I don't see the beginning balance here but that's okay because I can check it off once I start rolling in to the wreck in silviation so this is 0909 30 2 1 I'm sorry what am I doing here ending balance that's what they're looking for not the date 756 38 756.38 that's what I meant now I put it in wrong 756.38 and then the date is gonna be are they gonna make me use the date thing here let's bring it back 930 okay I think I got it this time I got it then we'll start the reconciliation I know what I'm doing here so we got the reconciling items up top this is the statement ending balance so you could see that on the statement here so there's our ending balance there and then we've got we've got the beginning balance which is 0 which normally and will be in all following presentations are all following reconciliations the 1000 but I'm still okay with that because I can check it off so I can check it off down here for the first one and it's not gonna throw me out it's not gonna not gonna be a problem I'll just check that one off I'm gonna uncheck all these notice they were already checked off because I did this with the bank feeds so it tried to help me out by just if you just check the whole thing off and say are you sure you want yes select select the whole thing it's gonna generally be reconciled why because we took all this information directly from the financial institution and now we're tying out what's in our books to what's in the financial institution so unless the beginning balance was a problem which it was this time won't be going forward or we somehow missed the transaction deleted it or didn't get imported or we doubled up on a transaction entered it two times then we should be in balance so it should be a really easy thing to do if we're being reliant kind of on the bank feeds to record this information but it could still get a little little mixed up when you make the payments like depending on how you make the payment but in any case let's uncheck that and do it one thing at a time there's the 1000 so now that's kind of what the beginning balance will be in the following way time plus the charges minus the payments is going to give us the cleared balance so once the this balance is equal to the cleared balance that will mean that we have checked everything off and anything that had not yet been checked off would then be the reconciling items there aren't going to be anything that aren't checked off here because we pulled all this information directly from the bank we don't have anything like we would have on the bank statement or bank reconciliation of outstanding checks and deposits so it should be a pretty easy process to just reconcile I'm gonna say okay we found that one and I'm gonna make it I'm gonna make it yellow highlight it and then I've got the 366 the 36603 36603 is right there the 7245 and the 4996 and I'm just gonna check those off check it check it out and check it off I've checked it out and now I'm checking it off because it all checks out Roger that so there we go and then the in balance is the 756 3875 638 so we're in balance over here with your bank reconciliation you want to make sure that is zero if it's not zero and it's like a dollar or something you're like that's not a big deal you kind of want to get it to be zero it should be able to get to be zero because you're not trying to check just the ending balance you're trying to get checked at all the other transactions were correct and if it's not zero you could have a large you know payment as well as a charge they kind of nets out or multiple payments and charges that you're missing that happens to net out to a small amount but you're missing all the detail so that's basically it we're gonna say it let's let's go ahead and say finish it you could you could of course leave or some or something and then come back later but we're gonna finish it now finish it done and so there we have that one let's do let's do one more on it let's do one more by the way before we do that though if you go to the history buy account you could find then your your reconciliations by the credit card account and you could go in here and view the reconciliation which is a kind of kind of intimidating looking report but the reconciliation is really just this part down here like this beginning balance the statement balance not quite right but that's okay because it's the first one because we had to we had to tweak it a little bit on that first one because the beginning balance was not right but we had to check it off and then the really the starting point is this area here the statement ending date the 756 38 versus the register balance the 756 38 there's no difference so there's no reconciling items and then it gives you more of the detail of what actually happened and whatnot but we're looking for the reconciling items there are none because it's the same so in other words if I go to the balance sheet here on the credit card it's going it's saying it's 756 38 and that's what's on the bank statement or the credit card statement 756 38 so it's good going forward let's do one more this time going to October this is our mock October statement which is going to start out at the 756 38 and then we've got this charge down here or a payment one payment that's all we did that's all we did this time so it'll be a really easy one so let's go to the first tab and let's do it again do it again we could go into it this way this is one way we can go into it bookkeeping reconcile closing the burger we're going into the credit card credit card account and this time the beginning balance it's there for us and it will be there for us every time going forward it's going to be correct every time we don't have a beginning balance problem anymore and this is going to be as of 10 30 to one note that if I go to the balance sheet over here we could change the date up top to 10 30 to one the cutoff date and run it run it and then down here we're at the the 631 77 that's where we stand right now that's where I'm standing and if we look at our our statement balance for for October 631 77 we're tied out because we created our financial statements directly from the bank feeds and so therefore there's no timing differences so reconciliation quite simple so we're going to go to the first tab and say I got I typed in the wrong thing again you got to type the ending balance first that's what they want the ending balance was 631 77 so it's 631 what is going on 631.77 quickbooks is doing this on purpose trying to drive me crazy 1031 1031 that's the one okay let's go ahead and start it and it should be as easy as this we can say okay there's the beginning balance and then notice it checked all of them off for us already why because we we pulled this in from the bank feeds so it already checked it off that's what the bank reconciled that's what the bank feeds do for us and notice it does for it does that for us even if we weren't constructing the financial statements from the bank feeds in other words if I had entered this first and then use the bank feeds to check that I have entered it matching up to a transaction I had already input then it would help us out with the reconciliation generally as well it's not a perfect system because if something's out of balance I'm going to have to re reconcile the whole thing again if it but you know it could help us out with that now if we could just check the whole thing off and then we're going to be in balance because we constructed this whole thing from the bank feeds so our ending balance should be tying out we got a difference of zero and we could just say finish it finish it and then done and there's your there's your process for the credit card bank reconciliations just for those two months that we can that we can take a look at it we'll have similar issues with the reconciliation process for the checking account which again we'll have that beginning balance problem with the first one and then everything from that point will be easy or as well and if we're building our financial statements from directly the bank information again it'll be quite easy because we won't have any reconciling items if we're doing some kind of a cruel method then we're going to have the reconciling items and that'll be a little bit more complex with regards to the bank statement and bank reconciliation.