Fictitious Bank set up to function as undeposited banks and transaction transfers from bank feed

Hi there, Mari-HI. Thanks for posting in the Community! I'm here to lend a hand.

To get started, let's identify all transactions associated with the fictitious bank, including the transfers. This will help us understand the impact of these entries on the overall balance.

Next, you can create a journal entry to move them from the fictitious bank to the correct accounts and adjust the amounts accordingly. But before doing so, I recommend consulting an accountant for expert advice about your situation. They'll be able to guide you on which account to use to debit and credit, as well as how to ensure books are error-free.

After making the necessary adjustments, reconcile the accounts to ensure that the balances are accurate.

Please let me know if there's anything else I can do for you. I'll be standing by for your response. Have a great day.

It sounds like you are dealing with a complex and messy situation with your client’s books. I’m sorry to hear that the previous bookkeeper created a fictitious bank account and made other major mistakes. Here are some possible steps to fix this issue:

• First, you need to identify and isolate the transactions that were recorded in the fictitious bank account. You can use the QuickBooks reports and filters to find these transactions, such as the Transaction List by Date report, the Transaction Detail by Account report, or the Audit Trail report.
• Second, you need to delete or void the transactions that were recorded in the fictitious bank account and re-enter them in the correct bank account. You can use the Batch Delete/Void Transactions tool in QuickBooks to delete or void multiple transactions at once. You can also use the Bank Feeds feature to match and categorize the transactions from your bank statement to your QuickBooks records.
• Third, you need to reconcile the correct bank account with your bank statement and make sure that the balance is accurate and up-to-date. You can use the Reconcile tool in QuickBooks to compare your bank statement with your QuickBooks records and identify and resolve any discrepancies.
• Fourth, you need to delete or deactivate the fictitious bank account from your chart of accounts and make sure that it does not affect your financial statements or reports. You can use the Edit Account option in QuickBooks to disconnect the fictitious bank account from your online banking, and then delete or make it inactive.

Hi Miriam,

Thank you.  That was my original thought, though in delving deeper in the system I found more problems, which may result in another alternative. I agree though that I should consult the accountant for expert advise regarding the situation.  Thank you kindly for your response.

Thank you!  I will try all that you have suggested.  I appreciate your input and guidance.