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What statement ending date do I use on statement to reconcile?!

Hey just abit confused with my bank statements. Doing first reconciliation for January.

Online bank says the statement for January was available on the 29th. January goes all the way to the 31st. The 30th and 31st was Saturday and Sunday. Did those days get cut off? 

If I use the 31st, there is a difference of just under $2k. But if I use the 29th im off by just like $500 or so. Which date should I use, so I accurately reconcile.

By the way Have Bank of America. 

Best answer 12-10-2018 08:45 PM

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Established Community Backer ***

"I didnt mark anything cleared. I was just entering the d...

"I didnt mark anything cleared. I was just entering the dates to start the reconciling process. And noticed the differences."

Until you start processing, any difference here is meaningless. You are ready to work.

"The transactions posted on the 31st, or from what I have entered on quickbooks dont show on the statement it also cuts off at the 29ths transactions."

"Don't show on the Statement" is the Meaningful Phrase. You are using that statement; it is your Outside Source of Reference. Your entries are Newer and More Inclusive = your perspective. You are matching your perspective to the bank's, which is that Statement.

"Will the transactions I have recorded pass on to the next months reconciliation process?"

We don't know that, yet. They will sit there as Uncleared, until you see the bank processed them.

It is like this example:

You pay me in Nov. I don't take that check to my bank until Jan. That still is your Nov expense. You Don't mark it as cleared until it finally shows on your statement, which = I finally submitted it and it Actually has hit Your bank and you see they also processed it for the Same amount that you entered.

Reconciliation = Verification.

Do your data and that Outside Source of Reference Agree? Same amounts, same entries for what Has been processed.

Another example: 3 months in row, I could not reconcile each time because I was off by nearly $2,500 each time, and it was Not My Money on those statements. B of A made electronic deposits to my account in error, 3 months in a row, so until I got statements, I didn't even know about this. I would make an entry to a Liability account = Not my money, and then I would reconcile. Finally, they took it all back = in QB I showed I had paid out the liability.


7 Comments
Established Community Backer ***

"I didnt mark anything cleared. I was just entering the d...

"I didnt mark anything cleared. I was just entering the dates to start the reconciling process. And noticed the differences."

Until you start processing, any difference here is meaningless. You are ready to work.

"The transactions posted on the 31st, or from what I have entered on quickbooks dont show on the statement it also cuts off at the 29ths transactions."

"Don't show on the Statement" is the Meaningful Phrase. You are using that statement; it is your Outside Source of Reference. Your entries are Newer and More Inclusive = your perspective. You are matching your perspective to the bank's, which is that Statement.

"Will the transactions I have recorded pass on to the next months reconciliation process?"

We don't know that, yet. They will sit there as Uncleared, until you see the bank processed them.

It is like this example:

You pay me in Nov. I don't take that check to my bank until Jan. That still is your Nov expense. You Don't mark it as cleared until it finally shows on your statement, which = I finally submitted it and it Actually has hit Your bank and you see they also processed it for the Same amount that you entered.

Reconciliation = Verification.

Do your data and that Outside Source of Reference Agree? Same amounts, same entries for what Has been processed.

Another example: 3 months in row, I could not reconcile each time because I was off by nearly $2,500 each time, and it was Not My Money on those statements. B of A made electronic deposits to my account in error, 3 months in a row, so until I got statements, I didn't even know about this. I would make an entry to a Liability account = Not my money, and then I would reconcile. Finally, they took it all back = in QB I showed I had paid out the liability.


Established Community Backer ***

You use the Statement's Cut Off date. For instance, State...

You use the Statement's Cut Off date. For instance, Statement dated Jun 1, for Transactions from May 1-May 31 = Statement Ending May 31.

"If I use the 31st, there is a difference of just under $2k. But if I use the 29th im off by just like $500 or so. Which date should I use, so I accurately reconcile."

Actually, no matter which date you put in or use, you Never have a difference, if you are reconciling correctly.

The date is not the important piece of Info. The Ending Balance is your goal.

I can put in a date that is Wrong as a typo, but I would still reconcile to a known Ending Balance. In other words, the date is Notational to reflect my outside source of reference = the statement or document that has the ending balance which is my Target to "be in balance."

It is best to never reconcile and end other than difference of 0, without resolving that difference. A difference of .25 might seem minor, but that could be an overlooked $1,000 deposit and two checks totaling $999.75, as an example.

It seems perhaps you are trying to mark Everything as cleared in that period, but that is not Reconciling. Reconciling is marking as cleared only those transactions you can see that the bank also processed.

For instance, I just reconciled May, and two checks were not on that statement, and I know they got mailed out at the end of the month, so the payees didn't cash them in time to make that statement = I do not clear these until they finally show on my statement.


Not applicable

I still haven't reviewed or reconciled the transactions....

I still haven't reviewed or reconciled the transactions. I would like to start it, and find out where those differences are to get it to $00.00.

I didnt mark anything cleared. I was just entering the dates to start the reconciling process. And noticed the differences.

The transactions posted on the 31st, or from what I have entered on quickbooks dont show on the statement it also cuts off at the 29ths transactions.

Will the transactions I have recorded pass on to the next months reconciliation process?
Not applicable

Thank you very helpful.

Thank you very helpful.
Community Contributor **

Re: You use the Statement's Cut Off date. For instance, State...

I have an issue with 4 checks. I just started this new position and I am reconciling all last year.

There are 3 checks that were paid back in April of 2018 and one that was paid in March, 2018. I am trying to reconcile May, 2018 because March and April were already reconciled (Not by me). When I see the May bank statement I see that they all cleared in May but they don't show as cleared in Quickbooks for the month of May. So when I go back to March and April they show in April and March because they have the payment dates for those months.

 

Do I check them as reconciled in March and April? Or what do I do in that situation? 

 

Thanks, hope it makes sense.

QuickBooks Team

Re: You use the Statement's Cut Off date. For instance, State...

I can shed some light on your reconciliation, Kelly.

 

When reconciling an account, you'll want to follow the date as to when a transaction was cleared in the actual bank. This means you'll reconcile your transactions in May even if they were created in March and April.

 

If you have other questions, feel free to add a comment below.

Established Community Backer ***

Re: You use the Statement's Cut Off date. For instance, State...

You use the account Statement. You only mark as cleared anything the Bank also processed and is on that statement. If they are not on the March statement, you Ignore them. If they are not on the April statement, you Ignore them. If they show on the May statement, you mark them as Cleared, because the reconciliation process is you Verifying, Yep! I see on the statement and in the bookkeeping that the exact same activity, for that same value, has been entered and have been Verified through the bank as being processed.