Troubleshooting Bank Reconciliations In Quickbooks

A common issue CPA’s run into a year end with their client is when the December bank recon doesn’t match the Balance Sheet. This has been a point of frustration for many auditors, bookkeepers and accountants when trying to tie out year end. Usually it’s a fairly simple issue and most of the time it only requires one step…reprint the bank recon to include transactions changed since original reconciliation.

What commonly can happen is that the bank account is reconciled right after month end and it reconciles perfectly and the recon reports are printed. However, several valid transactions can change the balance sheet balance (but obviously not what was printed at the time of the rec.).

For instance, you may reconcile December, then decide an uncleared check dated 12/29 should be voided. Once you void it, it changes the balance sheet, does not affect the reconciliation,  but the printed recon is now incorrect. The only issue is an incorrect. The same can happen with adjusting journal entries posted to cash accounts.  The best thing to do is reprint the bank reconciliations when the balance sheet is finalized at year end to account for any of these items.

The other reason the two may not match is due to post dated transactions. In a bank recon you can clear transactions after the statement end date. The bank account will recon just fine but the balance won’t match the GL. What you need to do is find the post dated transaction and date them in the correct period (this may also change the balance sheet).

Therefore, I recommend that most clients re-print the bank reconciliation reports after all year end adjustments are made in order to properly reconcile to the balance sheet.

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