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Gdiaz1
Level 1

Reconcile Multiple Credit Cards

I am trying to reconcile my companies credit cards, but the company has never done this, and they have been in business since 2015. I only have this year’s statement’s and can't get the previous years. My question is should I start at January of this year and just adjust for the discrepancies under a parent account or do I have to do each card individually? They are all on the same statement so if I do the individually what do I use as the ending balance?

6 Comments
Angelyn_T
QuickBooks Team

Reconcile Multiple Credit Cards

I'm here to help you with your reconciliation, @Gdiaz1.

 

Yes, you can do a force reconciliation by reconciling your account starting from January 2020. Then, create a transaction adjustment for the difference.

 

  1. Go to the Gear icon located in the upper right-hand corner.
  2. Under Tools, click Reconcile.
  3. Select the account from the Account drop-down list.
  4. Enter the Ending Balance and Ending Date.
  5. Tap Start reconciling.
  6. Click the arrow next to Save for later, and choose Finish now.
  7. You will get a pop-up window to click the Add the adjustment and finish or Go back buttons.

Since the transactions are on the same statement, you can enter the adjustment on the parent account. Also, you only need to reconcile the parent account because all transactions in the subaccounts roll up into it.

 

For additional references, you may check out these articles:

 

Before anything else, I would recommend consulting your accountant to guide you with the process and ensure that your reports are accurate.

 

You can as well read the details from this link in case you need related resources while working with QuickBooks or banking in the future.

 

Please let me know if you have any other questions about reconciling your account. I'm always here to help. Have a good day!

Teri
Level 9

Reconcile Multiple Credit Cards

I suggest first decide what you need to do going forward with the cards to back into how to fix.

If the credit cards are current/active, I definitely suggest each CC should have GL account, like:

2101 - CC Payable - AMEX 1101 - AB

2102 - CC Payable - AMEX 1102 - CD

2103 - CC Payable - AMEX 1103 - EF

Example if 3 cards one user each.  Use last 4 digits of card and employee initials to keep separated.

That employee is the person who should provide the receipts for these charges and clues on coding.

(In my industry, employees must submit Expense reports that show all charges with account coding).

Depending on what you have to work with, will determine how to do this.  Assume going back 5 years

is not an option. If tax returns have already been filed, usually not worth fixing old years unless real bad.

Yes, I would likely go back to at least January 2020 to try to make this year correct for books and taxes. Good chance you may need to write off prior year balances. Depends on dollars amounts and on how much owner wants to spend to pay you to make corrections.  Going further back than that would most likely put you behind on getting the current year correct, so you and he must decide best use of time.

I assume there have been accounting entries made for some or all of these, that is the unknown TBD.

 

Assuming you decided to write off all except 2020, adjust these account balances to match YE 12/31

CC stmts then proceed with making/correcting entries for each month and reconcile to M/E statements.

Ideally, every CC charge is recorded as a debit to expense (or asset) with a credit to CC account 21xx.

Then just need reconcile monthly up to last month end and write-off all the prior year transactions.

If your scenario differs and you want to share more specific, I might be able to assist you further.

Gdiaz1
Level 1

Reconcile Multiple Credit Cards

Ok so if the ending balance on the credit card statement is $245 do I put that for each card individually? I have never reconciled multiple credit cards so this is very confusing.  I have no idea what to put as the ending balance plus the beginning balance doesn't match any of the statements I have.

Gdiaz1
Level 1

Reconcile Multiple Credit Cards

I am going to just go from January of this year rathr than go back. The parent account has an opening balance that is from Nov. 2018 but all three cards have diffrent balances. The ending balnce on the statment is diffrent that what is in quickbooks. The balance ending 12/31 was$4865.35 and the new balance for 1/09/2020 is $6982.96. With all these diffrent numbers I have no idea where to satr. I don't want to make a correction only to have it cause the company issues later. The previous book keeper did go in and attempt to reconcile some of the cards but that is only up to march. I can't see where she got the opening balance for each credit card and the only things that go to the parent account are payments made on the cards not any of the transaction. Should I just make the correction under the parent account or the individual accounts and if I do it to the individual accounts how do I find the ending balance for each card whe they are all on the same statement? Also how do I fix it so that I can reconcile from the parent account?

Gdiaz1
Level 1

Reconcile Multiple Credit Cards

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I am going to just start from January of this year rather than go back five years. The problem is that I am unsure where to start. The opening balance for the parent account is from 2018 and it is completely different from the credit cards individual opening balances and the statement has another balance. I need to fix it, but I am not sure how to do it. I am very confused as to how to correct this. I am almost certain that I need to just change the opening balance or at least update it, but this makes me nervous because I don’t want to cause any major issues. I don't understand why each card has a different opening balance or why the individual transactions don't show up in the parent account. How do I fix these issues so I can move forward?

Tori B
QuickBooks Team

Reconcile Multiple Credit Cards

Good morning, @Gdiaz1

 

Thanks for following up with us. I'm happy to further explain an open balance and how it works. 

 

When you decide to record transactions from a real-life bank or credit card account in QuickBooks, you will need to enter an opening balance. The opening balance represents the balance from the date you choose to start recording transactions in QuickBooks, which is considered the starting point of the account in QuickBooks. 

 

For example, if you choose to set the date for June 5th, then the opening balance in QuickBooks is the balance of your real-life account's balance on June 5th. 

 

An opening balance summarizes all past transactions in your real-life account up to the opening balance date. 

 

That's should have you covered. Check out more details about opening balances in What's an opening balance? 

 

In case you may need it, I'm also including an article that covers beginning balances that you may find handy. 

 

 

Additionally, I recommend contacting your accountant so they can advise rather you should change your opening balance or not. Your accountant will know what's best for you and your business. If you don't have an accountant, don't sweat it. You can find one here in our Resource Center

 

Please let me know if you have further questions or concerns. Feel free to reach out to the Community at any time. Take care and have a wonderful week ahead! 

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