Monday, January 30, 2012

QuickBooks: Quick Help for Reconciliation Issue

HELP! I reconciled the previous month and everything was OK. When I started this month’s reconciliation, the beginning balance does not match last month's ending balance! Is there a quick & easy way to sniff out the problem? Or do I need to just retrace my steps - or start over for the previous month!!

Here's a neat and different trick to isolate the differential:
• Go to your reconcile window. Refer to the previous month's paper statement and enter the previous statement END DATE and ENDING BALANCE.
• Click continue.
• You'll see the difference in the bottom right hand corner and should be able to find the problem quickly (assuming it's just one or two items).
• Check off the items so that your difference is zero, and click RECONCILE NOW.

Now the numbers will be accurate to proceed with the current month. This method enables you to get back on track without having to un-reconcile first.

For your information:It is important to first understand that there are only so many ways a reconciled previous ending balance is changed as identified below:
1. A cleared transaction is changed to uncleared status
2. The date of a cleared transaction is changed to a post reconciliation date
3. The amount of a cleared transaction is changed
4. A cleared transaction is deleted
5. A new transaction is entered with a date before the previous balance date

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