Balance Adjustment Example For QuickBooks First Month Reconciliation

When doing bank reconciliation in QuickBooks, the biggest challenge is adjusting the fist month’s bank reconciliation. This example balance adjustment will show you how to make the opening balance adjustment when reconciling the first month’s statement. The beginning book balance was never input. So, the difference between the cleared balance and the statement balance should be the beginning book balance if you have no other mistakes. That’s why they call it an opening balance adjustment; because usually the difference is the opening book balance, people often don’t input the beginning balance or book balance.
There is a special issue that could come after the first month. If an outstanding check from 2 or more months ago is still outstanding after you make the opening balance adjustment for the first month’s bank rec, then in the second or third month, it could clear the bank and show up on the current statement. Technically, that check should never have been part of the beginning balance. But, you did not know that when you made your first balance adjustment because it was outstanding for so long. So, you must make another beginning balance adjustment to adjust for any outstanding check that you were not aware of when you mad ethe original balance adjustment. Both reconciliation adjustments should be dated the start date of the QuickBooks file or the start date of using the bank account. Whichever is more recent is the one to adjust. This real-life, hands-on example of the starting balance adjustment for bank rec in QuickBooks will show you how and why we do this in QuickBooks when we reconcile.
Here’s the full Desktop Bank Rec Playlist 👇
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Here’s the Full QBO Bank rec playlist 👇
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You will find all your bank reconciliation answers and solutions in this full QuickBooks Bank Reconciliation playlist, right here in UA-cam regarding how to do bank reconciliation in QuickBooks desktop? What is bank reconciliation? Each video in this full playlist will teach you another bank reconciliation feature. You can use the bank reconciliation clean up tools to clean up your QuickBooks file by fixing mistakes and finding errors in your bank statement. In this bank reconciliation process, you will use the bank statements to compare to your QuickBooks bank transactions. So, if you have a missing transaction or an extra transaction, even a duplicate transaction, it will be unconcealed when doing the bank rec. You will see any errors on the bank statement that would be there. This course will even show you how to reconcile previous months in QuickBooks. You also find, as part of the process, your QuickBooks mistakes and be able to prove that all for your QuickBooks bank transactions, and the whole QuickBooks file are correct to the last detail. These reconciliation procedures are more than just reconciliation tips and tricks. They are proven QuickBooks advanced techniques for finding and fixing any possible mistake This is a very valuable QuickBooks skill that you could gain from. You could help everyone you know with bank reconciliation and getting accurate numbers if you watch every video and follow step-by-step. It will give you real-life, hands on practice with actual bank reconciliation problems and solutions for anything that could come up when doing any company’s bank reconciliation in QuickBooks online. Every “on the job” challenge is addressed by demonstrating all bank reconciliation features and how they are used in QuickBooks online. The very last part of this playlist has videos that show how to prove that absolutely any type of company’s financial records and business transactions are correct to the last detail. These accounting concepts and auditing principals will hold true for any accounting software the business would use. There’s even a video about special issue with first-month bank reconciliation challenges and problems.
Please try to do the whole playlist. You will see and experience every possible situation that could come up to challenge you each time you do your monthly
bank reconciliation.
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[@worldwidequickbooks]

Hello, my diligent responsible QuickBooks friends!! I think it’s great that you want to be an expert in bank reconciliation in QuickBooks.
This video is the best real-life, hands-on example of how to do a balance adjustment when doing bank reconciliation in QuickBooks desktop. It shows what to do when an old check from several months before the first bank rec finally clears the bank. It’s the last normal thing you will need to adjust for in QuickBooks bank reconciliation unless you have mistakes that you cant find. You should not adjust for anything besides beginning balance and old outstanding checks.
I hope you will click “Like” and subscribe.
-Mark

[@ginamillis2046]

Great, this is almost exactly my problem. What about when the beginning balance is not 0? In my instance, the dollar amount was entered as the opening balance when it was created back in 2018 so it appears on the first reconciliation window. I have watched your other videos addressing this topic, but they don't speak to the first time ever doing a reconciliation.

[@worldwidequickbooks]

Thank you Gina,
If you did it that way, then just mark the begining balance entry as "cleared" when matching it to the begining balance of the statement. Then it will work.
-Mark

[@ginamillis2046]

@@worldwidequickbooks It worked! Thank you so much for your quick response and solution to my problem.