Ok so I've been using QB for a while, though i like the estimating and invoicing features I always have problems with bank feeds and reconciling, almost never match i always have to do adjustments , bank feeds all transactions into my QB account but transactions don't always match so I end up with two deposits for example and at the end my books says i have $2500 but in the real bank I only have $2000.
somehow I always zero it out so that both accounts match , but do this have an effect at the end of the year? for tax purposes ? and if so where do those adjustments go to , expenses ? my equity acc? please help clear this out for me Thanks
I'm glad to know that you like some features in QuickBooks, racso! I'll be happy to help you fix your reconciliation.
You’ll want to follow the amounts you see in your bank statement or bank feeds. Your deposit, for example. Since it shows $2000 in your bank feeds, your record in QuickBooks should also show $2000 (not $2500). You’ll have to find out why you recorded $2500 and correct it, so you can match your entries. Was there a fee or anything that reduced that deposited amount?
On the other hand, creating an adjustment is fine. However, it’s should only be used to temporarily balance your reconciliation while you’re finding which transaction is missing or recorded incorrectly. Once you find out the transaction caused a difference, make a correction. Then, you can delete the adjustment after.
By the way, you can find the adjustment entries in your bank register with the reconciliation period. You can double-click to open them and press the Crtl + Y keys on your keyboard to see which account they post. But for me, checking which account they post is no longer necessary since you will remove them once you correct the transaction that caused a difference.