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QuickBooks Reconciliation Guide

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Mastering QuickBooks Reconciliation:
Conquering Recurring Mistake
QuickBooks is a day-to-day tool for balancing a company's books. Even
the most advanced, savvy users of QuickBooks make reconciliation errors
from time to time. The good news, however, is that such mistakes are
conquerable. Please read on and be ready with this information to tackle
reconciliation problems head-on, including sometimes QuickBooks error
ps077, to ensure accurate, current financial records.
Reconciliations with technical steps can be painful, and you may
need expert information from a professional. QuickBooks
Professional can be obtained by calling 1.855.738.2784.
Why Reconcile Smoothly
•
Reconciliation is the core of financial accuracy in QuickBooks. What it does is
match your recorded transactions against your bank statements. Therefore,
every dollar is accounted for. Once this process disappears, the aftermath is
in order;
•
Finances are reported wrong
•
Hidden cash flow
•
Possible petrifying issues when auditing
•
Waste time on troubleshooting
Reconciliation mistakes, standard
errors, and remedies
1. Incommensurate Opening Balances
•
Problem: I dread to tell you, but your opening balance in QuickBooks does not
align with your prior statement's closing balance.
•
Solution:
•
Scan through the final reconciliation report
•
Locate uncleared transactions in the past period
•
Please postpone the opening balance if you want it adjusted and generate a
journal entry with a note explaining why it needs correction.
2. Unrecorded transactions
•
Problem: Some appear on the bank statement, and you cannot locate them in
QuickBooks.
•
Solution:
•
Make sure to review the bank statement for missing transactions.
•
You can enter the transactions in QuickBooks with the appropriate date.
•
Find bank feeds so that future imports of transactions are automatic.
•
Read More: How To Fix Error 80070057 in QuickBooks?
3. Duplicates
•
Problem: Transactions are being duplicated in QuickBooks.
•
Solution:
•
Run a report to identify which transaction has been duplicated
•
Delete the duplicates and retain the accurate ones
•
Install a system of double-checking for manual entries that would prevent
them from being duplicated in the future
•
4. Bank Errors or Timing Differences
•
Problem: Your bank statement is different from your records of either a
timing difference or an error on the part of the bank.
•
Solution:
•
For any timing difference, the reconciliation function allows you to mark
posted transactions as cleared to your statement.
•
For bank errors, please call your bank to clarify and make the right changes in
QuickBooks.
Step-by-Step Reconciliation Process
•
Well, let's get started. You can gather your materials; please have your bank
statement and QuickBooks open side by side.
•
Open Reconciliation: Walk through Banking > Reconcile in QuickBooks.
•
Enter Statement Information: Enter the statement ending date and ending
balance.
•
Match Tramark: You mark each transaction on your statement and in
QuickBooks.
•
Research Differences: Check every item that didn't match up if your
difference isn't zero.
•
Adjust: You could enter missing transactions or correct errors.
•
Finally, please balance the reconciliation once all your differences are zero.
Pain-Free Reconciliations Going Forward
•
Reconcile accounts monthly so you can identify issues before they become
critical.
•
You can take advantage of QuickBooks' bank feed feature so that, at least
regarding updates, you're getting real-time transactions.
•
Institute a procedure to ensure that all financial transactions are entered
promptly
•
Backup QuickBooks data regularly
•
Also, rules for classifying recurring transactions should be established.
When to Call in the Professionals
When you have implemented these steps and issues remain, it's time to call in a
QuickBooks ProAdvisor or your accountant. They will be able to provide a more
specialized view and help you with reconciliation of complex reconciliation
issues.
Reconciliation in QuickBooks mastery properly ensures books and, most
importantly, a clearer understanding of a business's health. It helps them make
good decisions, track trends, and guide their companies toward further success.
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