I get information from clients and I enter from their check stubs and deposit receipts. We were usng CSA and had to switch to Quickbooks. I have outstanding checks that I have and some are dated back to 2014. How do I enter these so that I can have these rolling forward each month.
I am doing the same thing regarding outstanding checks. I have the trial balance opening figures the checking balances to the adjusted balance per bank statement (less outstanding checks)
I entered the opening balance from the trial balance, where I am losing my mind is when adding back in the outstanding checks should I expense to open equity balance or how it entered originally?
I know this is basic bookkeeping I am just so overwhelmed with work I cannot think straight.
You don't use Opening Balance Equity, because you know this is Real Equity or you know this is real expense or whatever got paid for. It matters if you are doing this transition in the fiscal year yet to be reported, or in the prior fiscal year. Prior year income and expense roll into Equity, for both cash and accrual basis entities. An uncashed check from the prior year, now that this is Dec 2018, might simply be moot, now. An uncashed check from the prior month, in the current fiscal year, would be "enter that check" as regular check with details. A check from Dec 2018, transitioning to QB for Jan 2019, means your trial balance would not include the check as expense or equity, so that you can put on the check the details. Or, you want it to show it reduces Real Equity. Not OBE. Example:
I see the bank statement for Dec 2018, shows $1,200 for bank balance, and I also know I have two uncashed 2018 checks to enter, $100 each. So I make a deposit as $1,200 from Equity dated Jan 1, 2019. Now I enter those two checks dated historically, and enter what applies (it can be expense or equity, since expense already ends up in Equity on Jan 1, anyway). Now I am managing my available cash per my perspective effective on Jan 2019.
I am also wondering how to handle uncleared cheques from the prior fiscal year and old accounting system.
I have entered the Trial Balance from the old system in the new system (QBO) on the last day of the fiscal year.
These balances already take into account the uncleared cheques, because those cheques were posted in the prior period in the old system.
Wouldn’t adding the cheques again, in the new system, have the net effect of adding them twice?
Do you need to adjust the opening balance entry so that this doesn’t happen? Or can those cheques just be ignored and the transactions Excluded when the cheque shows up in the bank feed?
Were you able to find out the solution to this? I am having the same problem. I need to start the reconciliation after switching programs and my opening balances are correct. but I need to post my outstanding cheques to be able to reconcile my bank without posting them as a cheque, which would post it to the bank double.
Let's review all your transactions, KNS.
It could be that you've recorded it since your opening balance is correct. Duplicate transactions can result to discrepancies since it'll post twice on your account.
Go to the Accounting tab and select Chart of Accounts. Locate the affected account and click on View Register. From there, you can see all cheques that were recorded.
You can also read this guide for the detailed steps about reconciliation.
Get back to me anytime of you need more guidance.
I don't see where this was ever answered? We are moving to QB and just moving last year's closing year end balance as this year's opening balances. There were multiple outstanding checks as of the last fiscal year end. Our cash accounting balance is say $100 but our bank shows $250 because there were $150 in outstanding checks as of year end. How do I get this detail in there without throwing off all of the other balances? Your answer below wasn't helpful because you simply showed her how to look in her register. We know the checks aren't in the register because we only brought over the opening balances. How do we add the outstanding checks to the register without it throwing off our other balances?
Hi there, SB3878.
Once we have entered Beginning Balance, we shouldn't record any transaction beyond the opening balance's date. That will cause incorrect account balance and discrepancies.
The best way to handle this is by posting the check based on when it's cleared by the bank. That way, you can reconcile the account with no issue.
You'll want to check these links for additional details:
I'll be here if you need anything else. Wishing you all the best!