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.
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.
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.