Reconciling downloaded private bank accounts used in the start-up stages of my business where there are excluded transactions that were for personal expenses.

TimOH · ‎September 22, 2023

I used my private bank account from Oct to Mar to purchase stock and fit out my shop before we opened. I then opened a business bank account where the majority of my transactions take place now. To make it easy to capture all the relevant business transactions over the Oct to Mar period I linked QB to my private bank and downloaded all the transactions from Oct. I have been through them and Excluded those that are personal and categorised those that are for the business. There are 316 transactions categorised and 209 that are excluded. How is the best way of now reconciling the bank account. It appears to be a problem because of the excluded transactions that I am looking for guidance on how to resolve in my books. Any help would be greatly appreciated.

GeorgiaC · ‎September 22, 2023

Hi TimOH, thanks for joining the Community

It isn't possible to use the reconciliation function on bank accounts which have a large amount of excluded transactions. This is because the total of the transactions in QuickBooks won't match the bank balance on the date that you're reconciling to (the difference being the total amount of excluded transactions for that period).

In this scenario, you can instead manually reconcile the account by viewing the account history (Cog > Chart of account > Account history). Use the filter to enter a custom date range and then select the printer icon to print and compare against your bank statements.

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GeorgiaC · ‎September 25, 2023

Hi TimOH, thanks for getting back to me.

Your accountant may be able to input a journal entry to zero-out the balance of the private bank account. If you don't already have an accountant, you can find a certified QuickBooks ProAdvisor near you on our online directory.

You can go ahead and disconnect the live link to the private account by navigating to Transactions > Click the bank tile > Select the pencil icon to edit > Account info > Tick 'Disconnect this account on save' > Save.

This will remove the bank from the Transactions/Banking screen, however, you can still view this (and the transactions posted here) in your Chart of accounts. :)

View solution in original post

GeorgiaC · ‎September 22, 2023

Hi TimOH, thanks for joining the Community

It isn't possible to use the reconciliation function on bank accounts which have a large amount of excluded transactions. This is because the total of the transactions in QuickBooks won't match the bank balance on the date that you're reconciling to (the difference being the total amount of excluded transactions for that period).

In this scenario, you can instead manually reconcile the account by viewing the account history (Cog > Chart of account > Account history). Use the filter to enter a custom date range and then select the printer icon to print and compare against your bank statements.

TimOH · ‎September 25, 2023

Many thanks for your helpful feedback. Following on from the reconciliation, now that we have the business bank account that we are using exclusively for the business, I would like to zero out the balance sheet item that shows this private bank account balance. Is there a way of doing this?

Also I assume I can now cancel the link to the private bank account in Quickbooks so that I don't receive any more transactions from this bank account.

GeorgiaC · ‎September 25, 2023

Hi TimOH, thanks for getting back to me.

Your accountant may be able to input a journal entry to zero-out the balance of the private bank account. If you don't already have an accountant, you can find a certified QuickBooks ProAdvisor near you on our online directory.

You can go ahead and disconnect the live link to the private account by navigating to Transactions > Click the bank tile > Select the pencil icon to edit > Account info > Tick 'Disconnect this account on save' > Save.

This will remove the bank from the Transactions/Banking screen, however, you can still view this (and the transactions posted here) in your Chart of accounts. :)

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Reconciling downloaded private bank accounts used in the start-up stages of my business where there are excluded transactions that were for personal expenses.