I'm working on a client's file that has been worked on by a few other "bookkeepers." However, I finally got his bank statements reconciled for the year, but his bank balance is off. I mean WAY off. My suggestion to him was to start a new file since it is not just the bank balance that is not correct. However, I was wondering why would the bank statement reconcile, if it was not "in balance?"thanks!
I'm not sure exactly what it going on since you said you reconcilced the bank statement, but the balance is off--then what did you reconcile to?
If there is a difference in the bank rec window and you say reconcile now, QB will enter an adjustment to make it balance if you tell it to. It used to go to Opening Equity, but now it goes to Reconciliation Discrepancies. So, you might look and see if there are some JEs like that.
If there are a lot of problems and errors, it might be worth starting over with a new file and good beginning balances.
Michelle L. Long, CPA, MBA
Author of: Successful QuickBooks Consulting: The Complete Guide to Starting and Growing a QuickBooks Consulting Business
I am assuming that what you are talking about is the bank account shows considerable difference that expected, even after balancing the bank statement.
1. Look for checks and deposits that have not cleared, checks that have dates of 5 months or older, and deposits that are 45-60 days older than the statement date. Sometimes these things hanging out will cause the balance to be way off.
2. Look to see the total dollar amount of checks and deposits that haven't clear. then add/subtract them from the balance in Quickbooks, if it is close to the bank balance it is truly the correct balance.
I know these seem odd and simple checks, but sometimes it's just that easy
I did several months of statements and they all tied out to each bank statement, yet the "to date total" is off. Yes, there were minor discrepancies (which did go to Reconciliation discrepancies)that were recorded.
Any other thoughts?
What 'to date' total are you looking at? In the check register? If so, that wouldn't be the same as the date of the bank rec.
Michelle L. Long, CPA, MBA
Author of: Successful QuickBooks Consulting: The Complete Guide to Starting and Growing a QuickBooks Consulting Business
problem solved...I think...the former bookkeeper wrote payroll liabilities to clear them from the liabilities register, then cleared them, but the checks were never written. Thus, making the account balance much less than it really is. I have to do some more detective work as this problem goes back for a few years.
Thanks!
