Payroll checks and a payroll tax payment was set to be withdrawn from an wrong old bank account (I use QB payroll service). It cleared the correct current account and I've edited payroll settings to withdraw from correct account for the future.
Both payroll and tax payments can't be edited, and I didn't want to delete and re-run the payroll, so I created transfers from new account to old account for each check.
When reconciling bank account, the transfers and payroll checks written show up as payments/deposits. If I select all of the deposits and payments, they balance out to 0, which is what I need to reconcile. But the ending payment/deposit total for the account doesn't match the statement. Is this method a correct way to fix payments that were posted to the incorrect account and to reconcile those incorrect payments? I understand that journal entry could be made, but you can't reconcile it...
Alternatively, should I leave the incorrect payroll checks and transfers to correct them uncleared on reconciliation, as long as the difference shows 0? I use cash accounting method, would that mess up my payroll expenses?
Thanks!
