Hey, it's Candus and in today's QuickBooks tips and tricks,
I'm gonna cover
discrepancy. So I received an email from a viewer,
somebody in our community who is having a problem with bank reconciliation. So,
something I want to explain to you
is if you're going to do your bank reconciliation,
what you're gonna always do is you first choose your bank account,
if you've watched any of my other videos, you know that,
then you choose the date that your bank statement is ending.
Now, this has 2015, I'm technically creating this video in 2016.
This is a sample file that I use for my training purposes.
But if you look at your beginning balance, and you'll notice that
this says a 4,581.04
and that should match your bank statement.
So what I'm gonna do is I'm gonna show you what
you guys are typically doing that is causing your
discrepancies to go out of balance.
So typically, what's happening is you've gone back into your QuickBooks,
and changed or deleted or voided a transaction previous to the bank statement
that you just worked on.
So in this example,
I'm gonna go up here, see, the way you'll know if you've cleared a transaction
is if it has a checkmark.
So I'm actually gonna go in here,
and I am going to remove
this check right here.
So for
purposes of teaching you guys what's happening, we're gonna go in or actually delete that check,
actually, I'm gonna void it just
But typically, you're deleting or voiding it,
or any transaction,
this is gonna let you know it's not a good idea.
But somehow you guys are doing this anyway,
you mabe not have your warning sign
set up. So what happens is somebody goes back and changes
a previous year. In this example, the lady was going back in 2015,
even though we're in 2016, and making adjustments,
I'll give you some tips on how to keep from doing that in a moment.
So now if I went back and I clicked on reconcile,
you'll see my beginning balance originally was 4,581.04
and now it's
4,681.04
So when I go to reconcile,
I'd be like, oh, when I pull up your bank statement, you always check that.
And what you're gonna see is that it doesn't match.
But what I want you to do is you can do one of two things.
First thing I want you to do is click on locate discrepancies
and then there's a discrepancy report.
And what it's gonna do is it's gonna say, hey,
you change this Ace Hardware,
for $100.
So what I want you to do is if that Ace Hardware really needed to be in there,
and you accidentally deleted it,
you need to go back in
the first step and put it back in. So let's go in and put it back in
and I'll walk you one step at a time,
because that's the easiest.
So the first step is you're gonna go back in, and you're gonna re enter it.
So we're gonna go in here and
enter
a 15, even though we're in 16,
oh, wow, that was exactly a year ago.
That example.
That's funny.
It's gonna say this, I'm going to click
Continue running check,
cause I'm not gonna worry about that today. That's probably from a video
I created in the past.
And I'm gonna do job supplies, so I'm re-entering it the exact same way as originally entered.
And I'm gonna hit save and close
it let you know it's past 90 days, that's okay.
You want it to be the exact as it was before.
Now, what you'll notice is when you go in here,
this dollar amount
still says
the wrong dollar amount.
And that's where people a lot of times get confused. They're like,
wait, I re-entered the transaction. But why is it saying the wrong amount?
So what I want you to do
is I want you to go ahead and click on through
anyways.
So you're gonna type in your ending balance
that says on your bank account, and as long as you've re-entered your
discrepancy or fixed it,
and you know that
the balance, the ending balance is correct, go ahead and click Continue
and trust me
that in the end, it'll all work out. So now when you come in here,
you'll see
your $150
brings your balance
back to what your statement originally was
4,265.53, do you see that there? That's you're clearing balance?
If you do thatf irst, you check that and you go, oh, that matches what it used to be,
then you're good to go.
Then what you do is you go ahead and you check the rest of your bank statement.
Check all your deposits
and you see what your discrepancy is at that point.
And we'll save that check of $2,000 hasn't cleared the bank yet.
So our ending balance was 4,265.53
and it is clear, but did you notice
this is a key.
I want to unmark all these,
whatever transaction you've deleted in the past that you've re-entered,
or you had to modify it even.
So what will happen is if you ever have to go back and modify a transaction,
after you've cleared it in the bank statement,
your
beginning balance is gonna be off.
Locate your discrepancy, make sure it's right.
and then come in here and you'll see it sitting here.
You click it,
and you'll notice that your ending balance
matches what your bank statement is. That's the key.
Okay.
The things you can do. I'm gonna go ahead and leave this,
the things you can do
to make sure you're not having this problem,
the first thing you can do
is you can actually set up a closing
date,
password
What that means is, I've taught this before, I don't know if I actually have a video
in, on my YouTube channel or on my blog.
But inside my course I talked about this, it's
setting your
closing date. So down here,
what you can do is you can set your closing date,
December 31st, depending on
the example that you're using
and what you're gonna do with that is it's going to make sure
you're not changing transactions in the past.
So typically, this would be like a December 31st date.
If you're, if your calendar year if it's a fiscal year,
it might be August, July 31st.
So what you wannna do
is at the end of every year, close it
that way, the only transactions and errors you can make are in the current year,
and you can get those fixed,
just keeps you from having
previous year problems.
But the biggest key is to never go back and really change a previous transaction, delete or edit it.
The only time you do things like that is if you did something
totally wrong, and you have to totally redo it.
In that case, you'll do exactly what I said,
where you'll go ahead and put the correct ending balance.
Click Continue
and then go through, checkmark that first one.
and verify that your ending balance now is the accurate amount,
then go ahead,
move on with the rest of your statement,
and you'll be good to go.
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Have an amazing day. Thank you for being here.
Talk to you guys soon.
If you have any questions, make sure you comment below.
Bye-bye.