Bank Reconciliation presentation

1. 2013

2.  Reconcile your checking account
 Create bank reconciliation reports
 Find errors during reconciliation
 Correct errors found during reconciliation
 Make corrections when QuickBooks
automatically adjusts the balance in a bank
account
 Handle bounced checks
 Reconcile credit card accounts and record a
bill for later payment
 Online Banking

3.  Bank account should be reconciled each
month
 To reconcile a bank account:
◦ Select the Banking menu, and then select Reconcile
and select account
◦ Check Beginning balance should match the bank
beginning balance
◦ Enter statement date, Ending balance, service
charge and Interest earned

4.  Match each line with the bank statement:
◦ Match the deposits and other credits
◦ Match the checks and other withdrawals on the
bank statement
 Difference field should be 0.00 when finished
 Click Reconcile Now
 To pause reconciliation, click Leave

5. The difference
here must be 0.00.
Click here if you want to
see only transactions
before the statement
ending date.

6.  After a successful reconciliation you can
generate
◦ Reconciliation Summary report
◦ Reconciliation Detail report
 Select Previous Reconciliation Report displays:
◦ Select Summary or Detail option
◦ Click Display to view the report
◦ Click Print to print the report

7.  The Beginning Balance Field error:
◦ One or more reconciled transactions were voided,
deleted, or changed since the last reconciliation
◦ A user removed the checkmark from one or more
reconciled transactions in the account register
since the last reconciliation
 Incorrectly Recorded transactions
◦ Discrepancy between a transaction in QuickBooks
and a transaction on the bank statement

8.  Option 1: Use the Reconciliation
Discrepancy Report
◦ Review the report for any changes to cleared
transactions
◦ Enter the corrections
 Option 2: Undo the Bank Reconciliation
◦ In the Begin Reconciliation window, select the
bank Account and click Locate Discrepancies
◦ Click Undo Last Reconciliation

9.  If you made the error
◦ Make the correction
 If the bank made an error
◦ Enter a transaction in the bank account register
to adjust your balance for the error
 To void a check, double-click the
transaction in the Reconcile window, select
the Edit menu and select Void Check and
then return to Reconcile window

10.  QuickBooks automatically makes a reversing
entry using the date of the current bank
statement and same account that you used
on the original transaction
 The two transactions cancel each other out

11.  If the difference is not zero when you click
Reconcile Now in the Reconcile window:
◦ A transaction is created in the bank account for the
difference
◦ The transaction is coded to the Reconciliation Discrepancies
expense account
 To Correct the problem:
◦ Delete the transaction that is coded to Reconciliation
Discrepancies
◦ Undo the Last Reconciliation
◦ Perform the bank reconciliation again correctly

12.  Bounced checks are also know as NSF (non-
sufficient funds)
 Add two new transactions to your bank
account register:
◦ one for the amount of the check that bounced
◦ one for the fee charged by the bank
 To charge your customers a service fee for
processing their NSF check, enter an Invoice
for the customer

13.  Enter transaction in the bank account register
and code it to Bank Service Charges using the
actual date that the bank charged your
account
 If your vendor charges an extra fee for
bouncing a check, enter a Bill (or use Write
Checks) and code the charge to the Bank
Service Charge account

14.  Credit card accounts should be reconciled
every month
 After the reconciliation of credit cards,
QuickBooks asks if it should:
◦ Write a check for payment now
◦ Enter a bill for payment later
 If you don’t want to pay the whole amount
due on a credit card, edit the original Bill to
match the amount you actually intend to
pay

15.  Processing Transactions Online

17.  Reconcile your checking account
 Create bank reconciliation reports
 Find errors during reconciliation
 Correct errors found during reconciliation
 Make corrections when QuickBooks
automatically adjusts the balance in a bank
account
 Handle bounced checks
 Reconcile credit card accounts and record a
bill for later payment
 Online Banking