 QuickBooks Online 2023. Bank reconciliation reports month number two. Get ready to start moving on up with QuickBooks Online 2023. Here we are in our get great guitars practice file. We started up in a prior presentation using the 30 day free trial. We also have opened the free QuickBooks Online sample company. If you want the two open at the same time, we suggest using the incognito window or another browser. You can open incognito by selecting the three dots if using Google Chrome. 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 incognito window typing into the search engine, QuickBooks Online test drive. We're using the sample company to compare the accounting view, the one that get great guitars is in to the business view, the one the sample companies is. You can toggle between the two by going to the cog up top switch the view down below. We're going to duplicate some tabs as we do every time right click on the tab up top to duplicate it right click in the tab up top to duplicate it then going back to the tab to the middle so we can open up our reports on the left and bring in the balance sheet the big balance sheet. Note that 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 to the QuickBooks file for get great guitars tab to the right so we can go to the reports on the left and then open up the profit and loss on the right and then close up the hamburger on the left and then scroll up to the top so we can change the dates in the middle 010123 to 022823. I'm going to look at this on a side by side month by month basis run it to refresh it Jan Feb tote down below back up top we're going to close up the hamburger again and change that range in 010123 to 022823 and see it on a side by month side month by month run it Jan and Feb we're now looking at the bank reconciliation process for the second month of operations that being February in our case last time we had all but finished the bank reconciliation process but wanted to hold off so we can focus a whole presentation on the reports of the bank reconciliation so let's go back to the first tab so we can get into where we left off and so we can hit that green button we're scrolling down we're going to go into the accounting on the left hand side and the reconcile remember that if you're in the business view then it would be under the bookkeeping on the left hand side and then the reconcile on down below and we're just going to resume because we had started already so we're just going to finish it up here and once again I just want to recap and emphasize the fact that this process although important is not the actual bank reconciliation this is the process of bank reconciling and the report that will generate is the bank reconciliation so let's just take a look at the difference between the two this one represents the balance that was on our financial statement the 101 590 5 on our bank statement that is matches our cleared balance because the cleared balance in our books is now represented by the things that we checked off down below as well as the beginning balance the beginning balance which rolled over from the last time's beginning balance 61 241 85 we checked off all the stuff in our system that matches what's on the statement for the additions the 51 98120 and the subtractions the 11633 that's why we get to the 101 590 05 as we can see with these three numbers down below get into that 101 590 05 however that doesn't mean that our balance matches the 101 590 05 that is on the bank statement because as we can see in our in our balance sheet our balance is 95 259 06 there's still a difference here this just represents the cleared balance which is in our books but it's only the stuff that we checked off plus the beginning balances thus far the things that we didn't check off those are the reconciling items those are the things they're going to be showing up on the bank reconciliation those are the differences between the book balance and the bank balance and this difference here if it's not at zero then you don't want to go forward you want to fix it typically it would be the general idea you should be able to do that because you if it's on the bank statement you can adjust your books to the bank statement if the bank statement is right so that has to be reconcilable if it's not then you're losing a lot of the confirmation all right that said let's hit the green button let's take a look at the report that's generated when we do so says your reconciliation this account to see a report of this reconciliation you can click review our reconciliation let's do that this time last time I just said done we'll go into it here it is now just a quick recap that you can find this report a couple different ways right if I go to the to the handbooky on the left we could find it by going down to the accounting on the left and then reconcile and then within the reconcile you've got your your bank uh register information and on the right you've got the summary and history by account if I go into the history by account you got the cookies up top now we've got the two reconciliation reports that we've done thus far the other way you can do it do it which will get you to the same spot but you might think of it as a report even though remember that these reports are a little bit different than other reports but you can type in here reconcile in the reports area and do it that way or you can scroll down and I think it's under the accounting area for my accountant reconciliation reports if I go into that then we've got our two reports now notice that quickbooks does have both of these reports in here and also note it took us back to the cookie trail of the chart of account bank uh register history here so it's kind of outside the normal reports area which makes sense because this isn't a report that's generated from us entering data like with the plus button it's a report that's reconciling the data that we entered to an external source that being the bank reconciliation and if we delete anything or something like that if the report updates automatically it's going to throw the reconciliation out of whack that's why the reconciliation reports are kind of can be a little bit messy sometimes you want to save them after you reconcile in case something gets deleted in a prior period but they do give you these this the prior report is still here which is nice sometimes an accounting software they only give you the current reconciliation the one you just did and so if I go into that you can still we still see the prior reconciliation and if I go back into the history we've got the current reconciliation uh reports I'm sorry I did that backwards here's the the statement Indian date here's the prior one below and then if I go back here's the current one up top okay so we're gonna go into that let's just do a quick recap on this looks similar to the last one the first part is just a recap of what was on the bank statement we've got the statement balance the checks and payments that cleared the deposits uh that cleared and the statement balance which is just recapping what's on the bank statement and it should match to what we checked off in the books just like we saw when we checked everything off before we did the reconcile and hit the green button the reconciliation really starts right here when you have in essence the statement balance and then you have the difference between the statement balance and the register balance the register balance being this 95 to 5906 we can verify that by going to our checking account there's the 95 to 5906 so these three numbers are really the reconciliation but this isn't would not satisfy an auditor because you just you just plugged in the difference here and we don't know exactly what that difference is made up of I need to know what those items actually are so if I scroll down the detail here just represents the items that are cleared the things we checked off so it would just be the detail down here that we checked off not really necessary a little bit redundant these are the deposits that we checked off these items that we checked off in our system okay this is what we want the unclear items that's what we're looking for so these are the checks that uh that are that are in that we wrote that haven't cleared now most of them are on 228 and so I would think yeah those are probably going to clear in March we knew about them the bank didn't know about them we put them in our system because we do know about them the bank isn't putting in in their system until they know about them which will happen in March I can verify that as of the time we do the reconciliation because when I'm reconciling for the period in 228 23 it's going to be some time in March so I can go on to my bank rec online most likely and see if they have cleared the one that I'm concerned about right here most likely is going to be this one because it was written in January it didn't clear in January or February so I'm starting to think what's going on with this did it get lost in the mail did state you know did staples just not cash to check that's the one that's a little bit funny that's what the one where we might want to call our vendor and say hey look there's a check that we thought we wrote it doesn't look like it's cleared we might want to be able to take pre-emptive action before staples gets mad at us that can often be helpful in your relationship with your vendors because they're gonna they're gonna you know you can if you're honest with the situation so if you're tracking your your payments that can be a useful tool and then we've got our two deposits down here that also have not cleared which I can verify if they cleared in March then I'm okay with that so I'm gonna say okay that that means that this 8590.99 minus the 2260 is the difference of the 633 099 which is going to be that difference right there so that's gonna be our our report and just remember that this this 633 099 you might think I'm doing this to check those numbers remember that's not exactly the case I'm trying to figure out what the difference is exactly and then I'm gonna check those numbers because I want to make sure that those there's nothing wrong with those that it is indeed just a timing difference but if I can see exactly what the difference is then then not only does it give me verification that my ending balance is correct in terms of the cash account but it also gives me verification that all the other transactions in place that that we're leading to that ending balance are correct and all the other transactions that are taking place in time are going to help with the timing statement remember the balance sheet is as of a point in time the timing statement is generally the income statement and all these transactions due to being a double entry accounting system will have impacts on on some other side so the income statement is generated from the activity right and remember like you can get these ending balances using other software you could just look you know at your bank statement and see how close your balance is to your bank statement and you can use other software that that'll pull in the ending balances of all your financial accounts including liabilities sometimes like like your loans or your mortgage and stuff and that's great but it's only giving you a balance sheet it's not it's not making your income statement which is the more difficult thing to do which is the story of how you got to the endpoint and so the reconciling the cash account gives you a lot better verification not only about where you're standing right now at this time to verify but also about how you got there the transactions that are included in it which gives you more verification over other balance of the balance sheet as well as the profit and loss the activity statement so those are the bank reconciliation let's take a look at the trial balance which I didn't do last time and we did do some adjustments to the to the trial balance slightly for the for the for the bank service fees and the draws so I'm just going to type in trial balance here and check it out the trustee t to the b and let's change the range from 010123 to 022823 and see it on a month by month the side by side run it to refresh it and this is where we stand at this point in time if your numbers match these numbers then that's where I'm the same page if not try changing the date range and see if it's a a date range issue in future presentations or possibly in another course or future section we're going to move on to adjusting entry period and adjusting entry so that is going to be good times for sure