 QuickBooks Online 2024 Bank Reconciliation Reports Month Number One. Get ready and some coffee because the accounting team is on hand with QuickBooks Online 2024. Here we are in Outward Jit, Great Guitars 2024 QuickBooks Online Sample Company file we set up in a prior presentation, opening up the major financial statement reports done 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 the P in the L the profit and loss open in a new tab same with the trustee T to the B trial balance tab into the right closing the hamburger. Let's change the range we're going from 010124 to 022924 drop down so we can see it month by month run it tab into the right hamburger needs to be closed and then we'll change the range 010124 tab 022924 tab selecting the drop down we're going to see it side by side month by month run the report to refresh it tab into the right closing the hamburger scrolling up in those ranges they are a change in going from 010124 tab 022924 tab dropping it down month by month side by side let's refresh that report back to the balance sheet we've been taking a look at the bank reconciliation for the first month we have in our statement the 8864527 we have on the bank statement as of the cutoff point 131 January 31st 6124185 we've basically finished the process of reconciling and now we'll create the bank reconciliation report which will give us the difference between this number and what's on the bank statement which should be the outstanding items outstanding checks and deposits let's go to the first tab and resume the bank reconciliation in the transactions were in the reconcile we will resume the reconciling closing up the hamburger we will recall last time that we had the info up top if we look at the info we put in the beginning balance was zero that was a problem but we fixed it we got the 61,000 that's the ending balance that we just typed in there from the bank statement and here's the date on 131 24 closing this back out we then have the the reconciling worksheet comparing the statement balance and the cleared balance remembering that this cleared balance is not the same thing as the ending balance on the balance sheet which we can see is over here at as of January 31st 88645 27 so what then is this cleared balance that needs to match the statement balance that's all the stuff that we checked off all the stuff that we checked off has cleared that's all the stuff that was on the bank statement that we then checked off over here on our books side of things these two things have to match out so you get a green check mark saying it's OK to then reconcile this of course cleared balance is the beginning balance minus the payments plus the deposits and in our first bank rec within these deposits we had the beginning balance in here because that was the first bank rec that was one of the issues we talked about last time now the the unchecked off items are not necessarily a problem those are the reconciling items that's the exact difference between the book balance and the bank balance so you can kind of see how that works now if you if you have this at zero then when you hit the finish now you it'll give you the finish now otherwise the default here will be as we saw before if I uncheck one of these and this isn't zero it says save later difference it says here problem right your selected transactions it won't let me read it but it's an issue if I go back on it then the default is you're good to go you did it difference is zero so if I if I hit the drop down up top we have finished now save for later close without saving now note that just want to point out if it wasn't reconciled even down to the penny you could have an option here that you could say that you still want to close it finish now if you do that and you force QuickBooks to do that what it's going to do is create a journal entry in this case for the five thousand dollars which it's not a big problem in terms of the journal entry usually if it was five thousand it would be a big problem but if it was only like a dollar or something wouldn't have a huge problem in terms of the cash but the level of assurance that you have with the bank reconciliation goes way down if it's not exactly at zero because what if it's a two dollar difference that two dollars could have been a result of multiple deposits and multiple checks so even though the balance will be pretty close then by forcing it to reconcile the other side of the transactions which could be creating the entire income statement are going to have an issue right they could be off still okay so let's go ahead and finish the reconciliation your reconciliation this account to see the report of this reconciliation the view reconcile report so otherwise you're done so we typically would like to view the reconcile report and so let's go into that we finished the reconciliation process we've leveled up there so that's good okay so here is the report so if this this is at the checking account I'll one thirty one twenty four and we can see down below that we have the summary the summary will typically match what is on the bank statement meaning beginning balance plus attention additions and minus the subtractions is the Indian balance but here it's a little different because the beginning balance was an issue the checks are going to line up exactly right so here's the one one one eight twenty nine and then the deposits are going to be the thirty thousand beginning balance plus the deposits that we had over here for the first bank rec and then it gets to the sixty one two forty one eighty five the sixty one two forty one eighty five so note this is a nice little little summary to let us see what actually happened in the clear balances but it's not actually the bank reconciliation this is just giving us the statement balance starting from the statement balance that's when you get to the actual reconciliation because you're trying to find the difference between the statement balance and the register and the register balance as of the cutoff which is going to be the the one thirty one twenty four so here we have the unclear transactions so here and so the unclear transactions is the difference so really the reconciliation let's pull out the trustee calculator if we were to give this to like an auditor that wanted to to look at our books they would they would want to know the the difference between the books and the register which of course is this eighty eight six forty five point two seven minus the six one two four one point eight five that's going to be a difference of the twenty seven four oh three and on our books we can see over here on the balance sheet as of January eight eight six forty five twenty seven however of course this summary isn't going to be enough because the fact that it just gives us the difference here isn't going to give us exactly what the difference is isn't really helpful or useful either because obviously all the transactions after January thirty first will not have cleared because we haven't done the bank reconciliation for that period yet so really what we're looking at are these three numbers in summary the statement balance the unclear items and the register and then we want the detail on down below so let's look at the detail checks and payments that are cleared these checks and payments that have cleared should tie out basically to what is on the bank statement so although that's kind of interesting to have in one place it's not really given us anymore information because it's just basically given us the same information we have on the bank statement all the stuff that we checked off the cleared deposits and other other cleared so once again these are the cleared items which are on the bank statement what we're really looking for the things that have not cleared yet which are here so here's the unclear checks and payments as of one thirty one twenty four so if we were an auditor these are the items that we would be concerned with this is making up the difference between what's on the book and what's in the bank so what we want to do here is just double check these amounts so we basically say okay are these legitimate amounts how can we tell if they're legitimate amounts we can look at the bank account after the cutoff date after January thirty first to see if they cleared say in February for example if they cleared in February then I have some confidence that these are legitimate transactions that were entered in January cleared in February and are legitimate outstanding type transactions that's important not just to note that these transactions are legit that's not really the point of the bank reconciliation because remember the point of the bank reconciliation is to verify all transactions that are flowing through the cash account because because that allows us to give us verification on all the other side of the transaction which is the construction of the income statement in essence so so if I know that this is the exact difference I feel good about that and if I know that these are all legitimate transactions there's no plugs in here just put in the difference then that's going to be giving me more assurance on our internal controls not just over cash but the entire accounting system this is the unclear deposits and other credits so this is the deposit side that has been unclear if we look at the these two netting them out the three four oh seven two point five minus the six six six nine point oh eight that's going to give us the twenty seven four oh three which we saw in summary way up top here there's the twenty the twenty seven four oh three forty two so the bank reconciliation report is a kind of a like gives you more information than you really need on the bank reconciliation it gives you all this detail what you're really looking at is this reconciliation these three numbers and then the detail of this twenty seven thousand which is broken out not by the checks these are the cleared items not by the clear deposits but the unclear checks and the unclear deposits which you can then verify and then it gives you the unclear checks and payments after one thirty one twenty four which is really not something that you typically need because obviously everything after that date hasn't yet cleared so that's just basically telling you what has happened after that point in time which is kind of seems somewhat irrelevant to me but then we have the unclear deposits and other stuff after on the deposit side of things so there's the report now realize that this report is a little bit different than other than other types of reports because this report is not being constructed as we create the financial statements in other words when we actually build the financial statements over here when we enter the transactions with our forms then that constructs our financials balance sheet income statement as well as the subsidiary reports for example breaking out the accounts receivable by customer and all the all the supporting reports when we look at the bank reconciliation what is happening is we're comparing our books to the same information on the bank side of things and it's an internal control type of report so so therefore when you open it up you got to be a little bit careful of it from that perspective and you also have to note that if you change something then it's going to it could mess up your bank reconciliation right so in other words if I changed something and if I deleted a check or something like that then my balance sheet would be adjusted the double entry accounting system would adjust for that but if I delete a check that had already cleared the bank account then my reconciliation will no longer work if the reconciliation reports update automatically then I will be out of balance right because now I've now I've deleted something that was in the reconciliation helping me to tie out from what's on our books to what's on the bank books therefore with the bank reconciliation you oftentimes want to actually print them out when you when you create them so that so that you know you can see the bank reconciliation when it was actually reconciled and if there are any changes that happen at a later point in time that mess up the report you can you can see the report before it got messed up right and then you can go into the prior period or into the current reconciliation and try to see what happened what got deleted or anything like that so if I go in for example and find the reconciliation is then they might be located a little bit differently if I go into the reports here and close this up and I go into bank reconciliation I think they just call it reconciliation reports so if I go into reconciliation reports notice what it did there it took me out of where I was at in the reports it jumped me over to the transactions and it put me into the reconciled tab so that's when you're looking at bank reconciliation in essence they're not in the same location as the normal reports because their internal control reports you can find them in the normal reports but then it kind of jumps you back over here into the transactions tab and into the reconcile now if I go back to the chart of accounts and then back to the reconcile you'll see that you have this kind of cookie trail up top and then we have the ability down here to then do the next bank reconciliation which will do in a future presentation to see two months of bank reconciliation and then on the right we have our summary and history by account so if I take a look at the summary here then we got the reconciliation summary and here's my checking account and here's the statement ending date one thirty one twenty four reconciled on two one twenty four if I go back on to my reconciliation tab hold on let's go back this way and then go back into reconcile if I go into my history by account then it gives me the statement ending date and my reconcile on accounts here as well so I can then view the report so let's go in and view the report here is our actual report and so then I would actually possibly print the report because of the issues that you can have with the bank reconciliation so you might actually want to print it I'm going to print it as a cute PDF printer and say print and let's save that I'm going to save it into my bank rex here so then if there's any issue if there's any problems with it I can go back in here and see it as a hard copy now you also have the capacity to actually upload it back so if I went if I went into here and I went into my summary and we're going to say there's going to be my my checking so if I go into that hold on a sec let's go back here again reconcile and then let's go into the history and then here you can see there's actually an attachment so I might actually want to attach the report to have a hard copy within the same report in the event that if I delete something the question is will QuickBooks actually adjust the bank reconciliation which could throw off the bank wreck so I still like having a hard copy of the bank wreck is the thing so you could then attach and then upload the reconciliation here so I'm going to say upload and then here it is here's our here's our bank wreck and then we might even upload the bank statement as well so we can have everything there in one place possibly where the report is so that would be pretty nice so now we've got our attachments here we can view the report this way and then if if if someone needed it for external purposes we can say yeah here's the actual printout of the bank reconciliation at the point in time it was done in case anything gets messed up with it and we have the bank statement in the same location so I think that's a pretty neat capacity there so that's where the report would be located okay so in a following presentation or we're going to continue the process and do the second month of bank reconciliation that should be easier given the fact that we don't have that opening balance problem however it's useful to look at because these outstanding items the outstanding items down here the unclear transactions we would expect basically those to clear in the following month so now we have a cleared balance which is different than what's on the bank balance the and the cleared balance and then these are the unclear items that were written in our system in January which we would expect to clear in February so that's we'll be able to see the timing differences between the time that they were written and the time that they clear to get a better grasp of the bank reconciliation how it works and why it is important