I'm trying to clean up a client's QBO. There are a number of transactions between 2017 and 2019 (1076 to be exact) that aren't handled correctly. Is this worth doing something about, and if so, some guidance?
New - Bank Deposit gives 22 pages of entries over the above time period, a screen shot showing this is attached. I'd like to clear all these out so that it is correct.
You can see on the first line that the CPA made a JE (booked it to Sales Income/ Undep funds) to get the 2019 sales income correct (presumably). These were all from Square deposits and again, I think these are all there bc they were brought in on the conversion (yes, have since learned...don't convert old data!). The client does NOT (at least for the last 3 yrs since i've been here ) use invoices.
So you will tell me, to clear this out, I need to tick off the 1000 transactions to put these "payments (which marked the "invoices" as paid) into a Deposit to move these funds out of this list. BUT the effect will be to raise (debit) the bank balance by whatever all this adds up to. If I tick off that very first (JE) transaction showing here, that will presumably credit the bank account by that amount.
I feel certain that the numbers won't match (all those invoices vs. the $-33K)and I'll need to make a journal entry to restore the bank balance to it's proper amount. What account to charge this to? An equity account...? but that will mess up my balance sheet. Also, It seems to me it would be best to do one of these for each of the 3 years (maybe?). And maybe I just put it against "Sales Income" (what the JE of $33k was made to)...which will mean I open the books for each of those 3 years which will change the trial balances/year ending numbers but...maybe that doesn't matter?? (which I'm thinking right now is prob the way out.)
By the way, the A/R is all correct bc...she doesn't use invoices, at least now.
I'd appreciate any thoughts on this. I really hate all this stuff sitting there from the past..I'd really like things to be clean...
Thanks!
