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This difference in information due to the time it takes for a check to process is what requires us to reconcile the bank accounts. The bank will not know until the building owner deposits the check into their bank and their bank notifies our bank. If we wrote a check, we know the money has been spent, but the bank does not yet know. The reason is due to timing differences.Īn example of a timing difference is a person writing a rent check today and giving it to their office building owner. The book balance will never match the bank balance, however, even if we are talking about the same date, the date in this case of January 31, 2021. We would assume that if we input everything perfectly the book balance of $94,436.17 would match what is on the bank statement. We will compare this number with our QuickBooks data, on our balance sheet, to the bank statement. We will change the dates to because we will be entering the first month of data as of Janufor this problem. To open the balance sheet, we go to the reports dropdown, Company and Financial, and then Balance Sheet Standard. First we will look at the balance sheet cash account as of the end of the month we are reconciling. Bank reconciliations do not mean, however, there are no errors, but they do give good assurance that the data has been input. If we complete the bank reconciliation, then we have good assurance that the information input into the system is correct. Reconciling the bank accounts is one of the most important things that we have to do to make sure our data is entered correctly into the accounting software. If you would like a to follow along with a demonstration, we will be creating a QuickBooks 2018 course and providing backup files which can be used to practice and follow along step by step soon. We will show a real-life example providing a bank statement, QuickBooks data, and the bank reconciliation process.
#Quickbooks 2018 desktop setup sacramento tutoring how to
Learn how to complete the first bank reconciliation for a new company in QuickBooks.Įntering a bank reconciliation into QuickBooks takes time to learn, and the first bank reconciliation often includes added difficulties.