Question

How do I handle bank transition?

Forum|Forum|7 years ago
January 11, 2019
2 replies
16 views

I need help understanding the steps to transition bank accounts. My client's bank was purchased by another bank, so far we have set up a new bank account line item on the balance sheet. Now, what steps do I need to take to transition the outstanding checks and deposits so that I will be able to clear them later when I reconcile?

If you need additional details I can provide them, first time doing the process and it is hurting my brain.

Client Version: Quickbooks Desktop 2017 Accountant

Bank transition date 12/3/2018.

Final Statement Date from original bank 11/30/2018

Thanks!

A

Anonymous

Hi there, @HarborBusinessSolutions.

I'm happy to help share some information about handling bank transition in QuickBooks.

If you're going to receive two bank statements, one for the old account and one for the new, then you have to set up a new bank account in QuickBooks. However, don't delete anything. You should still keep a record of the old account. If some transactions are going to fall in the new account, then you can change the bank account on the transactions to match.

On the other hand, if you'll only receive one bank statement and nothing will change except the name of the bank, then you can just create a new account and merge it with the old account. This way, all transactions will fall under one account rather than separate accounts.

Let me know how it goes. Should you have other questions about the transition, don't hesitate to leave a comment. I'll be here to help.

qbteachmt

Level 11

@255439

Please learn from the input here; you don't need Make a new account then Merge. You simply Edit the existing one, remove any online banking setup. Then Rename it, if you used something more than simply calling it "checking." If you called it Checking or Operating Acct or something similar, you don't need to do Anything except turn online banking off and on, if the provider lets you know the existing connectivity must be changed.

And if you set up a new account because you actually Changed Banks and everything else is changed, your old account needs to be proven that it ended at 0, reconciling to the final statement and making the entry that reflects where the final funds ended up, such as "transfer from Wells Fargo Checking to Bank or America Checking."

H

HarborBusinessSolutionsAuthor

@LilyC

Okay so here is what I have taken away from this, and what I am telling my client.

For all bank accounts other than the primary checking ( I will explain), I will have them change the name and then update the bank feed for these accounts. I have also had them make a spreadsheet mapping which account goes to where so that if any other outside party asks they have something to go off of.

Now for the checking account, a separate Balance Sheet line item had already been created and a bank fee established. In the attempt to merge the old account into the new account, Quickbooks Desktop states that all prior reconciliations will be undone, and I did not like that, and I want to avoid this at all costs.

Would it work, and how would it work, to transfer the O/S checks and deposit items from the old bank account line item to the new account so that the December reconciliation can work, without duplicating information? This is the method that I would like to try because of the circumstance.

Please let me know what you think about this, and thank you!

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