Bank Reconciliation with Quickbooks Payroll Integration

Good evening, @dustin S3. 

Congrats on making your first post here in the Community. Let's work together to figure out which route would be best for you. 

Seems like you have payroll expenses already recorded in the QuickBooks Online account. Adding the ones that come from your bank will duplicate the expenses. 

Let's try matching the bank transactions to your payroll expenses instead. That way, the amounts won't be duplicated but the transaction will still show in your bank register. 

Before doing so, I recommend consulting with your accountant to be sure this is right for your business. 

Feel free to come back if you have any trouble along the way. Have a splendid day! 

Thank you, Candice,

Yes, if I add the ones from our bank, it duplicates the expenses, which I don't want. But I am not able to match the expense.

Specifically, the bank transaction of $1,000 covers both the Employee 401k salary deferral of $700 plus the company 401k contribution of $300. Both of these are shown in the QuickBooks Payroll view of the Paycheck. So when I run a P&L report, it already includes those expenses. 

However, I am not able to match this transaction because it consists of both parts of 401k combined (employee deferral plus company match). But excluding it makes it so that I cannot reconcile the bank statement. How should I handle this?

Let me help and point you in the right direction on how to handle your transactions, DustinS3.

We'll have to exclude the entries to keep your records accurate and facilitate the reconciliation process. Before we proceed, allow me to share some of the reasons to exclude the entries:

• Two transactions in the bank feed are a match against one transaction in the register (in this scenario, you would exclude both items).
• The transaction(s) is already reconciled in QuickBooks.

 We also recommend consulting your accountant first if you’re unsure about the process. In addition, they can offer advice on how to handle your entries correctly so that you can reconcile them easily in the program.

While waiting for the information, you can follow the steps below to exclude your entries. Here's how:

1. In your company, head to the Banking menu on the left and choose Banking.
2. Tap the Blue tile icon and select your account from the list.
3. Go to the For Review tab and tick the boxes for transactions you're working on.
4. Select Exclude.

Here's an article that goes into detail about the process: Exclude a bank transaction you downloaded into QuickBooks Online. It contains advice on when to delete or exclude entries.

Additionally, you can use these tools to help you balance your account and resolve concerns with reconciliation:

• Reconcile an account in QuickBooks Online
• Fix issues the first time you reconcile an account
• Fix issues for accounts you've reconciled in the past
• Fix issues at the end of a reconciliation
  
  

Fill me in if you have other banking-related concerns or additional questions about reconciling your account. I'd be delighted to respond to them.

That doesn't address the issue I continue to have. When I submit a paycheck in QB Payroll, it creates expenses in the "Employee Roth 401k" and "Company 401k Contributions" registers. 

Then the bank transaction appears for the funds withdrawn for those expenses -  it this transaction is categorized, then it double counts those expenses. If the transaction is excluded, then I am unable to complete the reconciliation for the month. And if I try to find a match for that bank transaction, it doesn't find/recognize the payroll paycheck. 

So if I:

1. Categorize the bank transaction, my Balance Sheet is correct but it double counts the expenses and my P&L is off.

2. Or if instead I exclude the bank transaction, my P&L is correct but then I am not able to do the reconciliation and my Balance Sheet is off.

Seems that I need to match the bank transaction to the QB online payroll paycheck, or adjust the "Employee Roth 401k" and "Company 401k Contributions" registers, but I don't know what is best or how to go about it.