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Level 2

Reconciling an Account - No Bank Link

Hello All, I'm back with another [possibly dumb] question!

 

I inherited a complete mess in QBO back in September, and finally managed to successfully reconcile one side of the business accounts with the help of the community here - thanks again to everyone! However, there is a second set of accounts for a secondary business run by the same owner that needed reconciliation. I did the other half of the business first because that account was much older and more complex so I assumed it would be the more difficult of the two, as this second account was only established in 2018 and has not had anywhere near the number of transactions. I thought if I could get the first one in line, this second one would be a cakewalk.

 

BOY was I wrong. The main problem seems to be that the bank statements for this second account reflect a TON of transactions that are simply not in QBO. As far back as April, which is when the previous admin stopped doing the job of maintaining the accounts at all, there are many missing transactions that show up in the bank statement for the bank account linked to Quickbooks but are not actually in the register in Quickbooks, and none of the checks written from the account reflect in Quickbooks either. My best guess is that the bank account was not uploading information (maybe not linked) to QBO periodically, causing gaps in the register's list of transactions, and no one was bothering to check into that or add those missing transactions manually at the time. Additionally, there seem to be about 40 transactions listed in the register from late 2019 and early 2020 that were never reconciled at all, and are just sitting in the system as 'Cleared' - I'm not sure what to do with those.

 

So my question is, should I just start creating manual entries in QBO for all of those missing transactions that appear on the bank statements? How do I go about doing that? And will that actually offset the currently drastic difference between the amount shown in qb and the amount shown in the bank?

 

Please, send  help. I'm not getting paid enough for this!

And thank you in advance - you guys are awesome!

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Best answer 3 weeks ago

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QuickBooks Team

Reconciling an Account - No Bank Link

Yes, you can, @Admin4Holliday.

 

You can manually create entries in your QuickBooks Online (QBO) account and offset the difference. Allow me to grab this opportunity to help you reconcile those accounts.

 

Before we start, let me thank you for sharing the details you want to achieve. To record those missing transactions in your QuickBooks Online (QBO) account, you’ll want to refer to your bank statements if it's either expense or income. 

 

When reconciling your accounts, your bank statement is the source of truth. If it’s money out, you’ll want to create expense transactions. If it’s money in, you’ll want to record an income or sales instead. Here’s an article you can read for reference:

Also, for the 40 transactions that are listed from late 2019 and early 2020, I recommend working with your accountant. Your accountant can provide you with the best advice on what action to take. This way, we’ll ensure your accounts are accounted for.

 

Furthermore, you can also utilize this article that can guide you in reconciling your accounts effectively in QBO: Reconcile an account in QuickBooks Online.

 

You’re always welcome to get back to me if you have other follow questions about reconciling your accounts. I’d be more than happy to assist you at any time. Take care and keep safe.

View solution in original post

2 Comments
Highlighted
QuickBooks Team

Reconciling an Account - No Bank Link

Yes, you can, @Admin4Holliday.

 

You can manually create entries in your QuickBooks Online (QBO) account and offset the difference. Allow me to grab this opportunity to help you reconcile those accounts.

 

Before we start, let me thank you for sharing the details you want to achieve. To record those missing transactions in your QuickBooks Online (QBO) account, you’ll want to refer to your bank statements if it's either expense or income. 

 

When reconciling your accounts, your bank statement is the source of truth. If it’s money out, you’ll want to create expense transactions. If it’s money in, you’ll want to record an income or sales instead. Here’s an article you can read for reference:

Also, for the 40 transactions that are listed from late 2019 and early 2020, I recommend working with your accountant. Your accountant can provide you with the best advice on what action to take. This way, we’ll ensure your accounts are accounted for.

 

Furthermore, you can also utilize this article that can guide you in reconciling your accounts effectively in QBO: Reconcile an account in QuickBooks Online.

 

You’re always welcome to get back to me if you have other follow questions about reconciling your accounts. I’d be more than happy to assist you at any time. Take care and keep safe.

View solution in original post

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Level 2

Reconciling an Account - No Bank Link

Thank you! Though this is taking a lot of time and diligence on my part, it is definitely helping me untangle the situation and I've already managed to get one month reconciled! I really appreciate the guidance :) 

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