Reconciling Past Years

Hello Somer,

It is good that you have reconciled periods for this year. Regarding the previous year's balances, it is best to reconcile it too just like your CPA suggested. It's great that you've created backup copies to ensure not damage or mess up the data.

For us to easily reconcile your 2019 data, I'd recommend doing it by month. With that said, you'll have to prepare your 2019's monthly bank statements. Your QuickBooks beginning and ending balances should match on what you have on your bank statements. If you need to correct the beginning balances, you can follow the steps in this article: Fix beginning balance issues in QuickBooks Desktop.

After correcting the beginning balances, you can start reconciling the account by month. Just follow the reconciliation process and the details on your bank statements until you reach the recent period.

You can also use this article if you encounter issues while reconciling the account: Fix issues when you're reconciling in QuickBooks Desktop.

Your accountant can be a great help with this process, too. They know what's the best action for your company file depending on your scenario.

Please don't hesitate to get back to us if you need additional assistance.

Thank you!  I will give it a try this week and fingers crossed as I have to do this for each year back to 2012 and I am a bit of a basket case :0/ 

Thank you for your previous reply.  I am so overwhelmed and am sure that I am overthinking this entire process. 

#1: January 2019 beginning balance does not match the bank statement.  Unfortunately for simplicity, I am going to have to do a journal entry to make it match so that I can move forward (I have to have all of 2019 completed by September)

#2: In addition I have found that some of the account types are recorded incorrectly in the register (see yellow highlights). Some of the entries will allow me to correct the account (Payroll Expense to Tax Liability) however there are several others that will NOT allow me to edit.  I have many entries that are listed as Accounts Payable but that should be expense specific as specified in the vendor account (Utilities, Equipment Rental Expense, building maintenance) to name a few. I also read that the deposits should not read as "undeposited funds" (highlighted in green) and that there was a way to fix but not sure if that is necessary or not. 

What am I doing wrong or what do I need to be doing differently as the CPA is telling me that these things need to be corrected in additional to the reconciliation in order to submit our 2019 business and personal taxes.

Thank you for your time,

Somer