The bank reconciliation process is used by the enterprises to make sure that the bank and financial records of the company like balance sheets, general ledger account and check register are completely accurate and up to date. Bank reconciliation process is always very time consuming and headache for the people. It can be very complicated process when there are many banks to be reconciled. So the QuickBooks can help you there in the best way.
The QuickBooks is not used only to make the Bank reconciliation process faster but also to make it accurate and simple for the enterprises. But there can be many errors that can be faced by the users when they tried the reconciling process.
Causes of Bank reconciliation in QuickBooks
- Entered incorrect ending balance at the start of the reconciliation.
- Missing some transactions in the QuickBooks .
- And also duplicate transactions in the QuickBooks.
- Mistakenly made an adjustment to your last reconciliation with a journal entry.
- You will enter the transaction into the QuickBooks that has not cleared your bank yet.
Here are some tips that can be used for the error free bank reconciliation process in QuickBooks:
Best Method to Error-Free Bank Reconciliation in QuickBooks
This problem comes when you are using the multiple bank accounts in your QuickBooks. You should choose the right bank account for it. Otherwise you will end up with the depositing and recording checks in wrong bank accounts. There can be two different accounts of the same bank name.
1. Check The Transportation Number
The most common mistake people do is during entering the number. For example if you are doing the bank reconciliation, you can enter 87 instead of 78. So you should keep in mind this thing to enter the right numbers during the bank reconciliation.
2. Check The Misplaced Transaction
If you are doing the bank reconciliation process and you see any transaction which is misplaced in the reconciliation window, you should manually enter that transaction by choosing that date in the reconciliation window. You can also use the find feature of the QuickBooks to find any transaction which was entered by you but is misplaced in the reconciliation window. You can find and edit the specific transaction by choosing that bank account.
3. Search The Inverted Transaction Error
You have to check in the system for the inverted transaction mistakes. Make sure that you have not entered any wrong transaction which still needs to be deposit. If you are using the QuickBooks then this is very important factor to measure the mistakes in bank reconciliation process.
4. Check if You Checked The Wrong Transaction
When you are using the bank reconciliation process, you will need to mark the completed transactions. So you make sure that you checked the right transaction because sometimes the user marks the nearby transaction which causes the error.
5. Check The Box on Top of The QuickBooks Screen
You can check the box named “Hide transactions after the statement’s end date” to hide the transaction which are old than the statement’s end date. It will make your bank reconciliation process simpler and less confusing.
So these are the tips which you can use to avoid the errors while using the bank reconciliation process in the QuickBooks. it will decrease the chances of the various errors in this process and also boost the speed of the bank reconciliation process.
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How do I correct Bank Reconciliation errors in QuickBooks?
The first thing you have to do to compare the deposits. Then, you need to match the deposits with the bank statements. Then, you need to adjust the bank statements and ensure the correct balance. Once you have done, then adjust the Cash account and compare the balances.
How can I make new changes in the Bank reconciliation in QuickBooks?
Open the baking menu and go to the banking tab. Then, you have to select the “Bank” option. Then, go to your QuickBooks and find the bank transfer. Hit the next click on the transactions and choose the “Undo” button. Once you are done with this process then go to the Review tab. Find the Record transfer and then select the correct account.
What is the purpose of an error-free bank reconciliation?
The main purpose of the bank reconciliation is to check and verify the accuracy status of the records which is maintained by the financial intuition or the depositor. The balance given on the bank statement is adjusted for unclear deposits and outstanding checks.
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