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Level 1

How to reconcile multiple years. Help.

Dear Quickbooks community,

 I am in the painstaking process of recreating the last 4 years of my company's records.

 Since the bank records where too old to download electronically, a lot of it had to be input manually by creating cvs. Files.

I have finally finished inputting 3 different bank accounts for the last 4 years. 

It is time to reconcile and I don’t know how to do it. All my accounts say my beginning balance is $0.00.

Also, do I reconcile month by month, or can I do it by year?

I would really appreciate any help and a step by step on how to do it. 

 

Thank you.

2 Comments
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QuickBooks Team

How to reconcile multiple years. Help.

I've got your back, Newproject.

 

Reconciling accounts in QuickBooks Online is my specialty, so let me help you determine how to handle this and ensure your records are up to date.

 

I'm happy to know that you've already added the transactions and I appreciate your effort in doing so. The next move you need to do is to reconcile them on a month-by-month basis, starting from the oldest bank statement.

 

Doing this will ensure that your balance, both opening and ending, for each month will be accurate. However, since your accounts are saying that your beginning balance is zero ($0.00), we can recreate it via a Journal Entry using the correct date and amount you want to see.

 

To recreate the opening balance:

  1. Click the Plus (+) icon.
  2. Select Journal Entry.
  3. Change the date to the correct statement date of your beginning balance.
  4. On the first line, select the appropriate account from the Account drop-down.
  5. Enter the correct opening balance in the Debit column.
  6. On the second line, select Opening Balance Equity.
  7. Click Save and close.

To set up the reconciliation:

  1. Click the Gear icon.
  2. Select Reconcile.
  3. Hit Start reconciling. Since it's your first time, you'll probably see Reconcile an account instead.
    - If a notification window appears, just click Let's do it.
  4. From the Account drop-down menu, choose the appropriate bank account.
  5. Confirm that the beginning balance on your statement matches the one on screen.
  6. Enter the statement Ending balance and Ending date. Include any additional information requested.
  7. Click Start reconciling.

To reconcile the account:

  1. On the Reconciliation page, compare the transactions on your statement and the ones on screen.
  2. Select every transaction on the screen that matches the ones listed on your statement.
  3. When the amount in the Difference panel is zero, click the Save for later drop-down arrow and select Finish now.
  4. Hit Done.

For additional information about the best practices when doing a year-end reconciliation and the steps on how to do it, I'd recommend following these articles:

I also recommend getting in touch with an accounting professional for more expert advice. Every organization is unique and they can make suggestions on how to handle this. Our Intuit Find-A-ProAdvisor site allows you to find certified professionals in your area that have the answers you're looking for.

 

With this information, you'll be a reconciliation master before you know it! Please know I'm always available here for all of your questions and concerns. Thanks for reaching out, wishing you and your business continued success.

Highlighted
Level 10

How to reconcile multiple years. Help.

@Newproject

 

If you've never reconciled bank account in QuickBooks, for the 1st bank reconciliation, the "Beginning Balance" should show zero. That's how it works. Just enter the bank statement "Ending balance" and "Ending date", and start reconciling. Select all cleared transactions, the difference amount should be zero. Click "Finish Now" button once you see zero $ difference.

 

To make it easier to reconcile, you can do month by month (or for the full fiscal year if not many transactions).

 

1streconcile_0_beginning_bal.PNG

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