 QuickBooks Desktop 2023, credit card reconciliation month number two. 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 Bank Feed Practice file. We started up in a prior presentation going through the setup process we do every time. View drop down. We've got the hide icon bar and the open windows list checked off the open windows are open on the left reports drop down company financial. Let's open up the P and the L. We will change the range from 010122 to 12 3122 and then customize it fonts to the numbers change and we'll bring it up to 14. Okay, yes and okay then reports drop down company and financial this time the balance sheet report customizing it changing the range from 010122 to 12 3122 and then okay. And then let's hold on a sec customize let's also change the fonts and numbers. If we may if I may bring it up to 14 okay now it's okay now it's okay it wasn't before even though I hit okay then we'll hit the drop down on the banking we're looking for the bank feeds the bank feed center which would only be there if we had the bank feeds turned on. We got two separate items we've been doing the bank feeds with and we're focusing in on the credit cards which typically we enter the bank feeds from the transactions meaning we don't typically do the full service accounting system in that we enter the transactions as we make them as we actually buy stuff we usually use the bank feeds or possibly just a credit card statement if not using bank feeds to record the transactions and that works quite well oftentimes for small businesses because the they're all electronic transfers so we don't have that timing difference we have with the checks we talked about last time that we could have an issue with that beginning but balance problem if I go back to the balance sheet when we first start the credit cards if we had a outstanding balance before we started entering the transactions our beginning balance might not match out now we fixed that problem so we should be good going forward I'm going to change the date to the end of the second statement 0932 and so now we have in the credit card 093085 if I go back on over here to the bank statement you could see it matches out here which will could often be the case with the credit card because once again we don't have the outstanding transactions checks and deposits and because we constructed our statement our books on or based on the bank feed so the data that's down here should match what we have in the system now that we have the beginning balance set up it's still advisable to do the bank reconciliation just to give a double check that everything has cleared that you haven't entered anything two times and that you haven't not entered something that should be in place but usually it'll be a really easy process so what will what if we want to do the bank reconciliation we should be able to just go over and say alright banking drop down we want to go to the reconciliation reconcile and we're looking credit card the credit card and it's as of 093022 this time the starting balance 66513 and that should tie out this time we're good to go this time round then the ending balance is going to be 093085 930.85 and then we don't have any finance charges usually you're not going to have any if you built your statements from the book from the bank feeds not because the the business or the financial institution your credit card company isn't going to charge you finance charges possibly but because they would already be pulled in from the bank feeds so you wouldn't have to add them in here so typically so I'm going to say continue on and then I'm going to hide everything after the cutoff date at the end of a nine September and so usually now that we have the beginning balance checked off because this is going to be exactly the data on the bank statement we should be able to say mark all and this number should just go right down to zero it's just a mark all boom and now we've got the 665 the 27547 the 54119 and the 93085 which should match our recap 665397547 54119 and there's our ending balance so it should be fairly straightforward to to do that note that if you have automated everything the bank reconciliation might be a chance for you to go back in there and and give a double check on you know a recap of your credit card because notice once you've done a few months of data input then you're going to start to automate things and that means you're not going to be looking at them as closely when you just add them to the financial statements because you're just going to add them most likely so the bank reconciliation could also be a nice time for you can go in here and actually say okay let me check these out in a little bit more detail and then verify any of these transactions that I think are unusual even though they are probably same or memorized transactions because that's what would pull through if you set up the rules but it would be a good time to double check them if there are any changes to the dollar amounts and what not with them you can see of course that we're tying out the detail down here so here's the detail that would tie out to the information on this side which we would have to check off one by one if this didn't pan out correctly then of course we'd have to unmark everything and go okay now here's the 8545 the 119 the 3499 the 1197 the 219 2060 71 21 and then say okay boom boom boom boom boom and then we paid off the 275 47 which should be on this side bam and then there we are so if that's at zero then of course we can reconcile it if it's not at zero you probably want to find out what the difference is because you might need to make a change otherwise QuickBooks will force a transaction and adjusting entry if you've got the beginning balance in correctly it should be quite easy to reconcile if there's not there's going to be something some weird things some probably easy thing that you could you know figure out by just taking and tying off the numbers so I'm going to go ahead and reconcile it now I'm going to reconcile I'm not going to make a payment because there's an outstanding balance I'm just because I'm not going to do this system to actually make the payment for the amount that's due at this point in time so I'm going to cancel that we then get our thing to pull up the actual bank reconciliation reports note that the process we did right here is reconciling that's the reconciling process that was not the actual bank reconciliation or credit card reconciliation this is the credit card reconciliation but we shouldn't really need it because I'm going to customize this fonts changing it let's go to 16 because we constructed our books from the the bank records from the bank statement bank feeds and therefore there's no difference there's no outstanding items once we have you know double check the reconciliation we want to reconcile in order to make sure that we haven't double entered anything or that nothing was entered not entered that should have been these top half of this will just be a recap of our bank statement the 6 6 5 13 the 5 41 19 the 275 47 gets to the 9 30 85 that should match here 6 6 5 13 275 47 5 41 19 that gets us to the 9 30 85 it's redundant that's why we don't typically need it what we really want is to see the difference between the cleared balance the amount on that the bank statement or the credit card statement and the register balance there is no difference because we constructed our financial statements directly from the bank so therefore this balance is what is on the balance sheet here and also what is on the bank statement that means the bank reconciliation doesn't really have any more valuable information because those two things match out this is the data that has been entered after the transaction date which again is typically irrelevant with regards to the bank reconciliation if I look at the detail report that we can go to the detailed one much the same but it's going to give us the detail which is simply the detail up top which is redundant because we already have it on the bank statement the cleared balance is here and that matches out and we don't have any other items if we had outstanding items meaning expenses that we entered into the system that have not yet cleared the bank then we would want to make sure to have the bank reconciliation to know what those timing differences are but we don't have any so we're good to go just remember that if you do save the bank reconciliation you want to save the detailed one because it will give you that detailed information it's not just going to give you all there's five items here what are those five items that's not very helpful although it gives me a nice summary recap of what's going on it doesn't give me the detail that I really want and need so also note that you might want to print the bank wrecks out if you want to save them because you can't really go back into them after you've done another bank reconciliation without like deleting the other bank reconciliation and so on these are not the same kind of reports as other reports meaning all other reports in the drop down here are basically giving some more detail about the major two financial statement reports balance sheet and income statement and are adding more information about one or multiple line items on them they're also constructed as you do the data input this report is reconciling what you did on our side to what the bank did which is going to match because we constructed our side from the bank and therefore if we went in here and deleted anything QuickBooks wouldn't have anything they could do to fix the bank reconciliation because now our bank reconciliation would be off it would be a problem so that's why there's kind of a difference between this kind of report an internal control report in essence and other reports which are financial statement reports and supporting reports so if I close this out just remember if I go back into the reports and I go into that banking and the previous reconciliation and go into the credit card then it just opens up the last one I had not you know so I can't really get access as easily to a prior one I could unreconcile if I if I needed to the reconciliation so if I entered one in error it was wrong I could kind of undo it and then go back and do the reconciliation again which might be a useful thing hopefully you don't have to do that but you may have to from time to time so if I went to the to the banking and reconciled and go to the to the credit card reconciliation you've got the undue last reconciliation right here so sometimes you might need you know need to do that from time to time if your balances don't tie out right if you forced something or someone else forced something to happen that wasn't right then you want to fix it and do it the right way you might have to undo but that's the general strategy going forward on the bank rex we will be constructing oftentimes with the credit card the the accounts from directly the bank feeds and therefore the bank rex should be quite easy when we go up to the to the bank rex for the checking account if we constructed our books directly from the transactions on the bank and they were all electronic trans transactions rather than checks and whatnot then it will often be similarly easy to do the bank reconciliation although still important to verify that we have entered everything and we haven't entered anything twice like that but if you have a more full service accounting system which is quite more likely the case with the checking account due to the fact that on the revenue side at least oftentimes small businesses still have to deviate from simply constructing their books from the deposits for example and on the payment side you might have actual physical checks from time to time or accounts payable that you're entering into the system which complicates the bank feeds makes it more difficult for us to construct our books directly from them and could result in outstanding checks and deposits because we're entering into our system separately than what the bank is doing that's the purpose of the bank reconciliation and that gives us a better internal control if we do have that full service accounting system which we could do with the credit cards as well in a full service accounting system would meaning every time we we do something make a purchase on a credit card we should record it at that time if we were doing full service accounting system and then verify it when the credit card clears but again a lot of small businesses don't do that because it's it's an electronic transfer and it works nice and easily to wait for till something clears the bank before entering it into the system okay so what we'll get will continue on and get to the bank reconciliation for the bank statements at some future point we will get there