Reconciling CC Statement mid year

AlchemySoundandVision · ‎March 12, 2019

Our company has never reconciled the CC to our Quickbooks accounts in the official way.

I'm wondering if I have to go back to reconcile past months of statements as opposed to just the most recent one for tax purposes or what not.

QB help said you could make one lump journal entry for say, a few months worth of charges totaling $25,000 as the starting balance and then reconcile the most recent one posted after that.

Is this accurate or would it be better to make sure the previous $25,000 in charges were accounted for and entered in separate transactions. How might this affect reporting and sales and use taxes, etc.

Just trying to save myself hours and hours of labor.

Anonymous · ‎March 12, 2019

You said it was never reconciled - but i am inferring that all the individual transactions have in fact already been entered? If thats the case then its just the 'reconciliation' issue to deal with - no extra entries will be needed if the balance in that account is already correct.

To reconcile you can do it all at once - no need to go thru monthly. Ever time you do a 'reconcile' what happens is that all the 'open items' up to the statement date are processed - no matter how far back they go. In theory you just enter the last statement date and balance then 'check all items' and it should balance. But if not then you should probably stop and cancel because it is very hard to try to do itemized check-off with a massive list and many paper statements.

Charies_M · ‎March 12, 2019

Hello there, AlchemySoundandVision.

I’m here to help make sure you’re taken care of while reconciling your mid year credit card statement.

In QuickBooks Desktop, you can do a lump sum reconciliation to reconcile past months of transactions that haven't been reconciled with your financial statements. This method is often called as one year at a time reconciliation.

Before you begin reconciling the account, let's secure a back up copy of company file.

For more insights, you can check out this article: Reconcile an account for multiple months or years of transactions and financial statements.

On the other note, if you're using QuickBooks Online (QBO), you'll need to reconcile them on a month-by-month basis, starting from the oldest bank statement.

Here's an article for a step by step guide that you can follow: How to Reconcile an Account in QBO.

That should keep you on the right track. Fill me in if you have additional questions while working with lump sum reconciliation. I'd be happy to help.

Anonymous · ‎March 12, 2019

Thanks Charles - I didnt know that about QBO.

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Reconciling CC Statement mid year