 QuickBooks Desktop 2023. Bank reconciliation reports month number one. Let's do it within two weeks. QuickBooks Desktop 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 QuickBooks Desktop. Get great guitars practice file. We started up in a prior presentation going through the setup process we do every time maximize in the home page going into the view drop down. We've got the hide icon bar open windows lists checked off open windows open on the left reports drop down company and financial. Let's take a look at the P to the L ranging to the changing just for the month of Jan 01 01 2 3 to 12 not 12 01 31 2 3 Jan I said Jan customize it font into the number into changing to 14 oh yes K then we're going to go to the reports drop down again company and financial this time that balance sheet you know where we're going customizing it 01 01 2 3 to 01 31 2 3 font in numbering changing for it in OK dokey yes CK there's the process that we do every time we've been doing the bank reconciliation tying out as of January 31st our banking bounds to the bank statement noting that it's not going to match typically if you have a full service accounting system because of the difference being the outstanding checks and deposit it deposits which we can see by going to our banking drop down looking at the reconciled this is our checking account as of the 31st that's the ending balance the beginning balance is off because that's our beginning balance problem we've been discussing for the first bank reconciliation continuing on noting over here if everything was perfect if it was the second bank reconciliation as we'll see next time the easier reconciliation going forward the beginning balance would be 30,000 and tying out to what we would have here and then the additions and the subtractions would be the same resulting in our cleared balance being the same as the bank balance which does not mean once again that our book balance is the same as the cleared balance the cleared balance represents the beginning balance which cleared in prior months and all the stuff that we checked off it doesn't include the stuff that's not checked off the stuff that's not checked off is it wrong it's stuff that we know about before the bank knows about it because we entered it before the bank had the information to do it on their end I'm going to hide the other stuff past January so these unchecked off stuff that was written before the cutoff before January 31st will be the reconciling items so just a quick recap remember this is the reconciliation process quite necessary if you do this reconciliation and if you get to zero then even if you don't even read the reconciliation report you've done a huge internal control it's worthwhile to do but if someone was to ask you for the bank reconciliation report then they're not looking for this big bank reconciliation process they're looking for the report that's going to be tying out and reconciling our bank balance here to the book balance now note that although this is under the reports area you can go to the reports drop down banking and look at the previous reconciliation you need to remember that this report is different than other reports all these other reports pretty much are being made from us except like the budgets basically they're being made from us doing the data input so they're being made from our data input this report however is being is something that's tying out it's a reconciling report it's an internal control report that's added on to and has to go over and above you know something needs to be added the reconciliation process needs to be added also note that you want to make sure to save the bank reconciliation reports because it's harder to get back to the previous bank reconciliation reports because if QuickBooks was was to make those bank reconciliation reports static it would be more difficult to change something in the system in other words you might ask what would happen if I reconcile everything I check these items off and then I go into my check register let's see if I go to my lists and I go to my chart of accounts and I go into my checking account you can see that these items have a little little asterisk that means they're in the process of being reconciled and then we'll check them off when they are reconciled what if I reconcile them and then I go in here and I delete the transaction well that's going to completely mess up my bank reconciliation now because now the data is not there the bank reconciliation doesn't work the reconciliation cannot really just cope with something being changed like the double entry accounting system has because you deleted something that was part of the bank reconciliation so that means that what you want to have is a static bank reconciliation printed out so if something was deleted after you did the bank reconciliation then you can kind of go and compare what you have in your books to the bank reconciliation and to see who you know what was deleted and then look for who did it who done it but but in any case so let's go ahead and finally do it then I'm gonna hit the button are you gonna hit the blue button or not that's what I'm here for okay let's hit the blue button we're gonna reconcile it so uh ever ever have to call the bank for your balance try online banking okay they're trying to sell me online banking we have a whole nother course or section on that congratulations your accounts is in balance all uh marked items have been cleared in the account register select the type of reconciliation report you'd like to see now you have the choice of the summary or the detail or both we're going to look at both of them now but just realize that the summary report is easier to look at but actually doesn't give you the information you need if you give the summary report to an auditor who asks for a bank reconciliation they're not going to they're not going to that's not going to give them what they want because it's not showing the detail of the outstanding items so you have to have the detailed report even though QuickBooks adds way too much stuff in the detail report that you don't need so let's go ahead and and look at both of them also note that when you first create the report this report displays current data it shows all transactions that were reconciled on the given date it also shows transactions that were unclear okay so when you first create the report it looks like all other reports and you get this nice drop-down thing and whatnot but after you close this report and go back into it you might see it in a different format it might look more like a pdf file or something like that so just be aware so again a little bit a little bit wonky a little bit different because of the nature of the report being different than the other types of reports let's customize it and go over here fonts and numbers let's bring the size up a bit and and expand on this a bit we're going to say okay yes and okay now this is the summary report now the summary report is great to kind of give us an idea of what is happening but once again it doesn't give us the actual vital information that we need so let's start with it so we've got the clear let's i'm going to collapse everything first let's see if we can collapse everything and just look at it in the simplest form now the beginning balance doesn't tie out here because that's the thing that we noted uh was was not showing up on the first balance we're okay with that because we added the 25 000 as part of the items that we checked off so and that's and this first part doesn't matter too much because we have the bank statement so this first half is kind of mirroring what we did on the bank statement and then we've got the checks and the deposits these are the cleared transactions these are the ones that we actually checked off again if we had a proper beginning balance this would just mirror what's on the bank statement so it's just really telling us hey this is the bank statement side of things that's why it's kind of redundant and then there's the cleared transaction 61 241 85 so 61 241 85 that should tie out exactly and it's not something that's really necessary because that's really where the the statement starts meaning this is the bank statement amount what i want to know is what's the difference between it and the book amount this is the book amount there's the 88 645 25 that's what's on the balance sheet that's the real bank reconciliation if you ask an auditor if you gave a bank reconciliation to the auditor that's what they're looking for but the difference is the unclear items the items we didn't check off outstanding deposits outstanding checks the problem here is that it doesn't give us the detail it just tells us that there's six checks that are outstanding and that there's one deposit that's outstanding so the problem is that we would want to know what those are so we can verify that those are actually valid checks by checking after the bank reconciliation date to see if they cleared the bank and we just don't have the details so that's why this report is kind of useless in practice although gives us a nice good overview of what's going on so we had six checks that weren't checked off and one deposit that made the difference of 27403 40 which is the exact difference to reconcile us to to the register balance what's on our balance sheet and then you have the new transactions down here which again aren't really part of the bank reconciliation process these are transactions that happened after january why is it on the bank reconciliation for january bank reconcile i don't know it doesn't seem like you really need it but they give you the transactions that happen after that point in time here as well okay so that's a nice summary but doesn't give us really what we want in detail because all i really want is this number and these six items listed out as well as this one item listed out to get to this number i don't need this stuff up top it's redundant i don't need this stuff down here because it's after the cutoff date so let's go to the second bank reconciliation report this is the detailed report same thing but now they give us the detail as indicated so i'm going to customize so now we've got way too much stuff because now we've got the same redundant or unnecessary stuff but the detail of it but it gives us the stuff we need too so this is the one you want to make sure that you actually print out because it does have the stuff you need on it so we're going to say open this up was that too much so we've got the the cleared stuff so once again this is all the stuff that we actually checked off this is the checked off stuff and then it doesn't let me collapse these huh and then we've got the deposits so these are the clear deposits that gives us our cleared balance again which is just in essence where the bank statement starts where the reconciliation starts because that's the bank balance and then the difference is the unclear checks these are the ones we didn't check off but this time it gives us the detail we want if i want to double check and verify that these are valid entries i can see whether or not these items cleared after the cutoff date or after the date of reconciliation january 31st and so that gives me some assurance that those are valid transactions as well as the deposit and that gives us then the register balance the balance that ties out to the balance sheet the stuff below it is stuff that happened in february which isn't really necessary for the bank reconciliation for january so it seems redundant the heart of the bank reconciliation is right here you've got the cleared balance uh and then you've got the unclear stuff to give us to the register balance as of the date of the bank reconciliation now again what you want to typically do is save the bank reconciliation report at least the details report possibly both of them because when you make the second bank reconciliation report sometimes you can't get back to the previous one so you might want to have a hard copy record of it and part of the reason for that is that if you were to delete stuff as you're going forward so you deleted some of these checks or some of these checks then that's going to mess up your bank reconciliation and and that and quickbooks has no way to just automatically account for that now you've also you've deleted something that you had said was reconciled so what you have to do then is take the reconciliation report that you printed before stuff was deleted compare it to the to your actual data of stuff that has been deleted and try to figure out what happened and then you go find the person that did some prior period stuff and you know you yell at them stuff so that's what you do so in any case uh that's that that is that we'll go on to the second month in future presentations it should be easier for the second month