 QuickBooks Online 2023, reports for my accountant and reconciliations. Get ready to start moving on up with QuickBooks Online 2023. We're going to be using the free QuickBooks Online Test Drive, searching in our online search engine for QuickBooks Online Test Drive, selecting the option that has Intuit.com and the URL into it being the owner of QuickBooks. 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. We're going to be picking the United States version of the software and verify that we're not a robot. Zooming in by holding down control up on the scroll wheel currently at the 1 to 5% zoom and noting in the cog dropdown, we're in the account view as opposed to the business view. We will try to toggle back and forth between the two views to get a look at where things are located in each of them, right clicking the tab up top to duplicate it as we do every time because we're going to put our major financial statement reports in them, right clicking again, duplicating again, tab to the middle as the tab to the right thinks going to the reports on the left and opening the balance sheet as that's thinking tab to the right reports on the left. This time the profit lost the P to the L closing the hamburger, the hamburger and changing that range in from 1 to 2, tab 1231 to 2 tab and running to refresh it back to the tab to the middle closing the boogie scrolling up changing that range in some 010122 tab 1231 to 2 tab run it to refresh it. That's the setup process we do every time remembering that these are the two major financial statement reports. Most other reports giving us more information about one or multiple line items within it. So I'm going to go to the tab to the right and then right click on it and duplicate it so that we can open up more reports on the left hand side and we're going to close up the hamburger and scroll down and we're going to be focusing in on these reports that are in the accountant area just give a little bit more detail on them and then we'll spend a little bit more time on the reconciliation reports typically thinking bank reconciliation because these reports are unique in that they're a little bit different from the other reports they're used for kind of like an internal control as opposed to being created as we do the data input and every company large and small whatever industry should be thinking about that reconciliation process because it's a huge check verification over the accuracy of your data. Now we're looking at the my accountant section so this would indicate that these are kind of reports that you might look at from an accountant standpoint possibly thinking then of your accountant or your CPA firm or your tax firm and that's where I would want to be thinking what's the end goal of us doing the data input whether we're a bookkeeper or whether we're doing our own company data input for small companies it's often tax preparation at the least which is going to be necessary at the end of the year and financial statement preparation possibly as well and therefore you want to always kind of keep the end goal in mind and possibly have the tax preparation firm the accountant in the loop so as you're doing the data input you're going to have that end goal and make the year end process as painless as you can. Now obviously at these days we can provide more information to an accountant using QuickBooks by adding them as the accountant so that they can get access to the data so these are the reports that you might imagine that they would want to run you could actually run these reports I mean if you were in another accounting system or often times you still might just say hey look I'm just going to give my accountant what they need balance sheet income statement trial balance and so on in order to do the job I'm asking them to do like tax preparation but if you have QuickBooks it's likely that you might give them access to the software by adding them as an accountant so just a quick look on how to do that I'm going to hit the hamburger and we're going to go down to the accounting down or my accountant down below and there of course an accountant can be your best partner and so you can invite an accountant possibly giving them access allowing them to look through the reports that they need so then we can imagine these as the reports that possibly the accountant might be picking up so now let's say well why would these be accountant type of reports often times it's because these reports are going to be using kind of debit and credit type of reports that are giving more detail okay given that one we've got the the general ledger so if I right click on that and open that in another window we've got the GL report now if you've taken accounting classes in a school environment learning accounting from the books from a book or something like that 0 1 0 1 2 2 12 3 1 2 2 tab and then run this then the general ledger is thought of is going to be the detailed report if you look at it here you're saying hey look this looks like the transaction detail reports if you work from the bookkeeping perspective you're going to say hey look I've seen this report that's the report whenever I go into a balance sheet for example and I go into the checking account I drill down on it I get a transaction detail report which is giving us the information by date of transaction and all this other neat stuff along with it as well as the increases and decreases to the account account that from that perspective if you've if you learned it in the classroom this report this would basically be a general ledger report for cash the account of cash so you can also run the entire general ledger which would be all of the accounts if I collapse these you could see all of the accounts right for the general ledger so before we had access to software often times the accountant if they were going to do financial statements or an audit they would want the entire general ledger in this format so they can get the detail supporting what's on the balance sheet might be less relevant these days given the fact that you can go into the actual balance sheet if you have access to the software and drill down on it that way so it's similar information so there's the general ledger the GL so I'm going to close that back out and then we've got the journal report we might spend a little bit more time on the journal report and check it out close in this I'm going to go from 010122 to 123122 and run it notice that this report gives you gives you all the information in a journal entry format so quite nice report if you want to basically see what has been done over a certain period and you can also try to look at the debits and credits by looking at each of the forms that were done and then trying to see what the actual journal entry is not just from an increase and decrease perspective but from a debit and credit perspective you might also use this form for billing purposes to try to count the number of journal entries and try to say I'm going to bill based on the number of journal entries this is a great report for reviewing as a supervisor for example to see what other people have done because you could say what other people have done in terms of data input over this time frame you can see the types of transactions that they're using it's also a type of useful report to sort by transaction type because you have all these different types of transactions and you can focus in on say invoices and whatnot and see what the standard journal entries are for say an invoice so I'm going to go back up now the reason it might be an accountant report here so anything with a debit and credit column is probably put in this category by QuickBooks because QuickBooks is going to try to make the data input as easy as possible without debits and credits you got the profit and loss these are redundant reports we saw them up top of course the accountant would want them if you're going to do the taxes that would be the baseline your P&L report if they didn't have access to the software but they're already up top recent automatic transactions you can see the things that have been turned on for automatic transactions to be reoccurrent recent transactions so this is nice report to see the ones that have been up recently I'm going to come back to the bank reconciliation we've got the recurring template list we got the statement of cash lows this again is a redundant report because it's one of the major financial statement reports or at least second to only the balance sheet statement constructed from as we discussed earlier the balance sheet and the income statement you got the transaction detailed by account right clicking on this open it up so now you've got the transaction information by account list go from 01012 123122 and run it so now you've got your accounts this is you know similar to the chart of account information because it's breaking it out by general ledger information because it's breaking it out by account and giving you transactions by account however you might want a transaction detail report by date and so we'll talk about this one in more detail later but I'm going to close this back out that's this one transaction list by date we'll dive into it in more detail later but just to take a quick look at it now from 010122 to 123122 now you're not looking at a GL because it's not breaking it out by account but rather by date so you can see the timeframes that things have been put into place it's kind of like that journal report except that you don't have the debits and credits it's trying to put everything on one line so it is condensing the transaction so you can see a nice quicker shorter list of activities also a great report possibly to base your billing on because you might try to say how many transactions I've entered the system and bill based on the number of transactions also a great report to sort by by transaction type to look at activity for a particular transaction closing this back out the other one is the trend is you got the transaction list with splits this is a neat report as well because it gives you that same data but it also gives you the splits so 010122 123122 we might talk about this one more in the future as well so it's a similar report but now it gives you the multiple line items that are impacted so it's like the GL report but it's not in the format of debits and credits it's more in like an increase decrease format but it lists all the accounts that are impacted with the forms so that also could be a great report to focus your billing on and try to get an idea of which accounts are affected by transaction also a great report to sort by transaction type we'll talk more about those most likely in a future presentation and then you've got your trial balance which we might talk about more in a future presentation too which is in essence your balance sheet on top of your income statement this I think is here because it has debits and credits but even if you're not used to debits and credits if you can get a feel for where the balance sheet accounts and income statement accounts are this is a great report to open instead of the balance sheet and income statement as you're doing data input because then you can do the data input with the plus button here and as you're entering these transactions you can jump over to this report trial balance instead of the balance sheet and the income statement drill down on these accounts and you have only one report open instead of two and it's much more streamlined because you don't have all the subtotals in it so we'll talk more about it later now let's get to the bank reconciliation now these ones they don't have an actual reconciliation in here so I just want it because it's one of those verification type of reports so we just want to get an idea of what the bank reconciliation is and why it's a little bit different we're going to go into a whole section in and of itself on the bank reconciliation do you mock bank reconciliation in a future section or a course so we can focus in on it but the idea of the reconciliation if I go back to the balance sheet is that clearly the checking account is here and we can also ask ourselves well as of 1231 22 do I really have 1221 that's the question most people think of with the bank reconciliation and we can go to the bank and possibly a bank statement let's say looks like this this isn't this is for a different not having the same company data in it but this is a mock bank statement and let's say that the balance was different this is different dates but let's say that the balance was different as of the same date if it were the same date that would be common in a full service accounting system to have the money in our books as of 1231 22 to be different than what's on the checking account side of things so we might say well then I've got it I've got to fix this basically to make sure that it's right that's one thing that we're trying to do with the bank reconciliation but that's not the only thing we're trying to do it's not just the fact that cash is so important that we've got it we just want to verify that that one number is correct because what we're really trying to do is use the cash account due to the fact that it's being involved with all other flows in our system and the double entry accounting system to verify that all the transactions in the checking account is correct so it's not just so in other words you might say hey look if this amount was 12001 and my checking account was like 1000 and I'm only $201 off who cares all right it's not that's immaterial compared to my to my overall dollar amount I'm not going to waste my time worrying about it but you're not really worrying just about the $201 in that case you're trying to reconcile so that you're verifying every transaction within the system and if I go into this account if I can verify that all of these transactions that happen in the checking account are correct then I'm getting a verification on all the other cycles see this bill for example is not only affecting cash it's a pay bill it's affecting accounts payable this this is a payment it's going to be affecting the customer cycle this is an expense so the other side is probably going to go to the the income statement of an expense account so I'm double checking the expense account a check form the other side is probably going to an expense account over here the sales tax the other side is going to taxes so because the cash is the lifeblood of the company it has an impact on every other cycle in a way that no other account does cash is involved no matter what kind of cycle you have for the vendor cycle whether you have a cash based accrual based cash is involved in there somewhere cash is involved somewhere on the customer cycle at the end of the cycle whatever that cycle is cash accrual depending on the bank feeds we expect the deposits to be going up typically and obviously it's involved in the employee cycle so our goal with the bank reconciliation is to verify all of the activity in the checking account and due to the double entry accounting system that means that all the other accounts that are impacted by those transactions are also verified so it's a much bigger thing than most people kind of you think at first glance well the checking accounts close that's fine notice that small companies large companies everybody should probably do the bank should do the bank reconciliation because if I was to look at this for example at someone's books and say how much trust do I have that these books are accurate that they put the data input accurately the fact that you're using QuickBooks is a huge step up in and of itself why because you have the double entry accounting system you have assets equal liabilities plus equity QuickBooks forces you to do that that double entry accounting system is an internal control the biggest one in and of itself however it's quite possible that you just don't enter some transactions and or you enter them incorrectly you know if you still have the double entry accounting system the reconciliation of the checking account verifies it to an external bank and that gives you that added level so if someone is both using QuickBooks and doing bank reconciliation my level of confidence is way higher than if they weren't doing either one of those two things and it doesn't have to be QuickBooks any kind of accounting software and doing bank reconciliation they're using a double entry accounting system and doing the bank reconciliation then the level of confidence goes way up now other thing just to note on the bank which we'll talk about when we get to the reconciliation process is that now you've got this issue of bank feeds happening and you might say well if I have bank feeds how does the bank reconciliation work within bank feeds and just give a quick look at that and let's jump on over to our chart of accounts over here and you could if I think about this like on the customer side of things then notice at the end of the day you expect to have a deposit for goods and services that you're selling typically and like we've talked about in the past there's different ways you're going to structure this based on your industry the easiest way to do that would be that you're just waiting until something clears the bank and depositing it then possibly with gig work if you're at youtube is paying you or you're getting paid by google or amazon and you just wait until they pay you and you record it as a deposit if you do that you're in essence using a deposit form and you can use the bank feeds and that kind of system and that kind of system you're not only on a cashed based system you're basically waiting until it clears the bank you're dependent on the bank you're instructing your books from the bank there's nothing wrong with that if you have a system that can do that but it's not really a full service accounting system because you're not entering the data separate from the bank and using the bank to verify you're just entering your data from the bank in that case if you can do that then great that would mean that your checking account would match pretty much all the time to what's on the bank statement at any given point because you constructed your data from the data from the bank you didn't double check your data from the data from the bank but if you have a system where you can't do that like you're at a cash register for example then you're going to get the cash you're still on the cashed based system but you're going to get the cash or the checks or the credit card payments and then you're going to deposit them in that case when you make the deposit it might not exactly match the date that it clears the bank you're going to end up with differences in timing because when I made the deposit on my side is different than when the bank made the deposit that's when in a full service accounting system we have this difference that's going to be natural it's going to be there all the time it's getting smaller and smaller these days because the transactions clear much faster but even you know even if I deposited the money today it still takes like a day to clear so I might have a difference between what's on my books from the banks and I'm verifying that I can verify that with the help of bank feeds but the bank feeds are now just double checking the data input like a bank reconciliation it's helping me with the bank reconciliation as opposed to me using the bank deposits to create my books so there's a difference there and then if it's a full accrual system I have to enter an invoice and bill the client which doesn't have any cash involved in it at all that's when I record the revenue then I receive the payment and then I record the deposit now you could like fit the bank feeds in here like you might say well I'm going to have an invoice and then try to use the bank feed to connect to the invoice but oftentimes you would think this would go through the whole process I'd make the deposit and then I would have to tie it out to the bank feed so once again the bank feed is a double check we're doing our books the bank is doing our books on their side in the cash at least and we're double checking as an external third-party verification of our books on the on the vendor side of things many times these days people do electronic transfers so it's more likely that small companies can do their books from the bank feeds meaning again you're reliant on the bank but because there's because the transfers are happening pretty quickly then that works pretty well however if you're writing checks that's when you're definitely going to have this difference you're going to want to enter the checks when you write the checks so that you can see when they're cleared and which are outstanding and you're going to end up with this difference on outstanding items so we'll dive more into the bank reconciliation process in the future but just notice it's different because the bank reconciliation process isn't something that you're doing as you do the data input when I do this data input from all these forms invoices sales receipts I'm not actually creating a bank reconciliation I'm just doing my books on the double entry accounting system and then the bank reconciliation is me taking my books and comparing it to a bank statement from the bank and then looking what the differences are and if there's a difference on the bank side of things that's not on our books then it's most likely the bank is correct and we're going to have to fix it we're going to have to add it to our books if there's something on our books that's not on the bank statement it could be just that that's an outstanding item it's a deposit that hasn't yet cleared because the bank hasn't processed it yet or it's a payment that hasn't yet cleared because the bank hasn't processed it yet if we constructed our books directly from the bank with the bank feeds instead of verifying to the bank with the bank feeds or reconciliation then we should tie out exactly because we made our books from the bank instead of verifying our books to the bank so that's the general idea we'll dive more into the bank reconciliation later but it's a really important internal control to do whether you have bank feeds on or not if you're constructing your books from the bank feeds it'll be a really easy thing to do because it'll tie out exactly but you still want to have that double check so if I go down to the accounting down here you can go to the reconciliation and here's your reconciliation kind of process so you can get started with the reconciliation I'm going to close this out and the ending balance would be whatever the ending balance is 1000 as of 1231 let's say boom and then you go into your bank reconciliation now this is the reconciliation process this isn't an actual reconciliation report and once you reconcile this then it'll generate a bank reconciliation report now also just note that you can also do the bank reconciliation for the credit cards as well let's go back over here and reports and balance sheet the credit cards are also a financial institution you remember they act similar to the bank account and you can do a reconciliation but most of the time people with credit cards are entering their credit card data at least the payments of the credit card with the bank feeds if they're connected to the bank so the credit cards should tie out quite easy you still want to do the reconciliation but it should tie out you shouldn't have any outstanding items if you're entering the data into the system directly from the credit card bank feed system so again it should be a pretty easy process even though that's not like a full accounting process because again normally you would enter the data and then verify to the credit card statement but because the timing is so short and we're becoming more reliant and it's more dependable that the transactions are correct we can take the data directly from the credit cards okay let's go back to the first tab and just go to the drop down and go to the switch to business view just to see where stuff is located in it as opposed to the accountant view so we had the business overview reports that's where our reports are at and then we also went into the where did we go we went to the bank reconciliations which are under bookkeeping right here bookkeeping and then the reconcile item down below so that's where that reconciliation is I think those are the main areas that we went in this one so there's where they're located under the business view