How can I reconcile a bank account in a closed year?
Transactions are entered through 12/31/2008, but the bank rec has not been done since 3/2006. How can I get back and complete the bank rec's from 4/2006-present? What are my options?
Prior books that are closed should not have data changed that will effect tax returns already filed. I would suggest making a copy file of your company and review bank reconciliations matching to actual statements from your bank website to see if the beginning and ending balances match. If the numbers do match just start reconciliations for the tax year 2008 just be very careful not to delete possible audit items. Another solution would be to enter by journal entry the correct totals into accounts for the current year if account figures are off. Ask your accountant on which equity account they suggest for the journal entry. Moving forward try to reconcile atleast monthly some of my clients even reconcile daily with their online bank balance this will vary with the amount of daily transactions your business will process.
You can go back and do the bank reconciliations, but will have to manually enter all the information, for 2006. Once you reach 2007 then you can import the previously entered transactions and reconcile normally from there. Bank reconciliations in EasyACCT are entirely one-way (pull-only,) so there is no way for the reconciliation to impact prior periods. If it tries to gripe about entering a closed year in the dialog, just put something else in (like 1/1/07 to 1/1/07) and fix the reports on-screen before printing.
