Old unreconciled transactions in Quickbooks Desktop

@JohnP53  Depends a bit.

Are the unreconciled transactions meant to be unreconciled, or did something go off the rails?

If they are, for instance, checks that were never cashed, it's simple enough.

You'll want to use the Make Deposit window to create a deposit. Have it deposited to the bank account the check was originally written out of. For the From Account, use the same expense/liability/asset accounts that were listed on the unreconciled check in question. Use the first non-closed unreconciled period for the date.

This will offset the original expense/liability/asset payment you made back then, but in the current period.

You will do this for each of the unreconciled transactions. When you go to reconcile, checkmark both the deposits and the originally unreconciled transactions. This will reduce the effect to zero and take them all out of the Reconciliation Window in future.

This is generally better than using GJEs; when you can, work with QB's systems; GJEs are a last resort.

It's important to be cautious with any changes that may impact your prior tax years, John. I'm here to discuss details and guide you through your options.

Generally, utilizing journal entries can help remove transactions from the reconciliation window, but it’s essential to ensure that the entries are entered accurately to avoid discrepancies in your financial reports. When you make a journal entry, it usually requires debiting and crediting equal amounts to different accounts to eliminate the transaction from the bank account and keep your ledger balanced.

An alternative approach is voiding the transaction, which triggers QuickBooks to create a journal entry automatically. This action essentially cancels the effect of the original transaction and updates the records to reflect this change. For instance, when you void a payment, QuickBooks will make a journal entry that credits your bank account and debits the expense or asset account linked to that original transaction.

Before proceeding with any of these options, I suggest reviewing these transactions with your accountant to assess the impacts on your financials and tax liabilities. They can provide tailored advice based on your specific situation and prior years’ accounting. Additionally, always ensure that you create a backup of your company file before making any changes.

I'm sharing this article to guide you anytime you need help doing or fixing a reconciliation: Learn the reconcile workflow in QuickBooks.

If you have any other questions or require further assistance, add them in the comments, John. Your financial clarity and satisfaction are important to us, and we're here to help you maintain accurate records.

Thanks for the reply. They are all checks that have never been cashed. And at this point, they are not going to be cashed because they are so old. I am going to follow what you suggested, and it should work out. Thanks again for the advice. I generally don't like to use journals unless it is a last resort. 

Hey JohnP53! I am so happy our Community was able to help you! If you have any other questions in the future, you know where to find us! Take care.