would you like to experience real-life bank reconciliation issues will then stay tuned as
we do together the second consecutive month of bank reconciliation in QuickBooks Online if you
have any questions about this topic you can leave them in the comments section below and I'll do my
best to help you and of course if you feel the video helped you I hope you will click like and
don't forget to subscribe to get updates on new videos that come out all the time in the second
consecutive month that you will reconcile an account in QuickBooks Online you will notice the
following issues first you will notice the unclear transactions from the prior month appearing on
this month's bank statement now we will mark them as cleared when we finish the little history link
in the top right will have an additional report for the second months reconciliation and on top of
that I purposely planted a mistake in the February statement so that you can watch exactly what we do
step-by-step when we find a mistake when we're doing bank reconciliation now here we are in the
statement of the second consecutive month the first thing you may notice is that the ending
balance of last month from the previous video when we did January is equal to the beginning
balance of the February statement what we want right away is the ending balance of the February
statement because that's the first thing we put in the ending balance and ending date so back in
QuickBooks Online we click the cogwheel we go over to tools and click reconcile now I lost my chance
put in the ending balance and ending date because I was preparing for this video but you will have a
field that you can put both of those in I would have to click resume reconciling and click Edit
you see I had already put these in and moved forward and QuickBooks Online didn't let me go
back but you can put them in now and then click reconcile or continue reconciling and you will
see we're at this window now you can click that don't bother me box if you want the help to stop
popping up and you may notice in this month we have both deposits as well as payments and
you should click all because the format of the statement I'm giving you is the more challenging
format where the cheques and deposits are mixed and put in date order rather than separated for
your convenience it's better to learn on the harder format so when you go on the job it'll
be a breeze now we're going to mark them off one by one exactly the way we learned in the previous
video so the first one we're looking for is the thousand dollars for cheque number one - con
Edison do we see that here yes we do we mark it off and the cleared balance changes the next one
we're looking for is cheque number two for 515 or x repair oh wait wait before we move on remember
as soon as you check it off in your quickbooks online change the color in your excel file to
indicate yes we've marked it off in quickbooks online now let's examine check number two 550
rex repair it is there so we mark it off and then we tell Excel that it is and quickbooks online
we do that by clicking the highlight now let's examine if check number three is there for $500
to Staples yes it is so we mark it off and then we tell Excel that it is in fact in QuickBooks Online
aha look at this one candy Charles $2,100 guess what this was an outstanding deposit from the
previous month January that cleared in February when we look closely we see that this twenty one
hundred from candy for sales receipt number five was actually recorded in January but it did not
clear the bank until the beginning of February so it is a legitimate deposit we mark it as
cleared and then tell quickbooks online that have cleared the bank now what about this check or this
electronic transfer to rex repair for a thousand dollars well seems to me that that matches here in
quickbooks online so we're going to tell excel by marking it off and highlighting it oh look at this
this is another one that was outstanding at the end of january that now appears on the february
statement this three hundred from candy let's take a look this three hundred from candy was actually
received in january but it wasn't recorded by the bank until it cleared at the beginning of
february so it is legitimate and we mark it off and then we tell quickbooks online there you go
now keep going because you're going to see a surprise the next one check number four for
five hundred dollars does match the next one so we got to make it blue to tell the statement that
it's equal in quickbooks online the next one which is an electronic transfer for two hundred dollars
is that in quickbooks yes so if it is we mark it off and then change the color on the statement
stay with me for another moment okay the next one eight hundred dollars for verizon yes that's also
in quickbooks online and let's change the color because we just marked it off in the quickbooks
online UPS for $900 is that in QuickBooks Online yes it is but now wait aha check number seven
for staples in QuickBooks Online is five hundred dollars but when I look at let's mark this blue
when I look at check number seven for staples in the statement it has it for eight hundred dollars
stop right here check number seven on February 14th for staples was eight hundred dollars on
the statement but check number seven two staples in the quickbooks online is five hundred dollars
so what exactly do we do if we find a difference well our quickbooks online shows the february
fourteenth check number seven two staples as five hundred but the bank says check number
seven on february 14th is eight hundred dollars what do we do we look back at the original check
to determine who's wrong and the bank should be required to send you a photo copy of the check
with the statement or by special request if you didn't keep a copy for yourself once you have
the copy notify the bank and request a corrected statement after receiving the corrected statement
start reconciling that month from the beginning now if we made the mistake ourselves we don't
have to do steps one two and three if we were the ones who made the mistake all we would have to
do is go and correct it in our quickbooks online records and then come back to the reconciliation
window but if we look at check number seven for staples we can see clearly that the bank made
the mistake in this case and in this case the five hundred dollars is the correct number so
let's imagine that the bank gave us the correct statement and if we take a look here in Excel we
can now jump over and see that the bank gave us a corrected statement we're in let's just zoom
in here we're in check number seven is now five hundred dollars and there's actually a different
ending balance as a result of the correct amount of the statement it's a good thing we caught that
otherwise the bank would have basically stolen three hundred dollars from us that's why we do
bank reconciliation you can see that the new balance is three hundred dollars more it's
like earning three hundred dollars because we're responsibly doing bank reconciliation and catching
the bank's mistakes so now we have to go back to the beginning and start all over now the way to
do that is remove all the checkmarks yes select all and then click again to remove all end when
it comes to edit info edit the information and change the ending balance to what the ending
balance is on the new corrected statements which is this amount that we're going to paste in here
now yeah get rid of the dollar sign so you don't have a problem and then click Save and now start
from the beginning marking off everything one by one now you can pause the video and try the rest
of the bank reconciliation yourself if you are unsuccessful excuse me if you are successful and
the difference is equal to zero then you could fast-forward past the mark of the matching part
that I'm about to show but don't worry there's a little bit more to discuss at the end so don't
quit the video just fast-forward through the mark the matching part but if you're unsuccessful then
you can unclick everything again and rewind the video and follow along with me step by step so
let's go ahead and do it now here we are back in the statement and we're checking to see if
check number 1 for $1000 is there and I happen to remember that it is ok so let's mark it in
blue check number 2 for 550 is that here yes it is so we'll go back to the statement and we'll mark
it in blue check number 3 for 500 is that there yes it is so we'll check it in quickbooks online
and in the statement market in blue remember this one this one was from last month but we know it's
correct then it cleared this month it's up here actually it's up here sale receipt number 5 for
$2,100 so let's mark it in blue what about this $1000 this transfer to Rex repair this thousand
dollars this transfer to rex repair is correct so we come back to the statement market in blue what
about the $300 for the receipt for candy yes it is it's here that was one of the ones that
we wrote in January that didn't clear till the beginning of February so we mark it in blue what
about check number 4 for 500 that's correct in both places so we click it here and we mark it in
blue what about this transfer you know sometimes the only thing you have to go on is the number or
the money amount itself but we know that there's a minus 200 so we check it and mark it and highlight
it in both places what about this Verizon for 800 yup that's there click let's scroll down a
little bit good we're making progress market in blue I'll highlight the next one minus 900 it's
there somewhere it's some oh there it is my it's a payment for 900 so if we check it here then we
mark it in blue let's examine check number 7 for staples for 500 is that there yup looks like it's
there check it off and market in blue what about ahaha what about this UPS check for 800 it's there
so if it's also 800 here we check it off and we mark it in blue what about this check number 8
two staples for 1650 looks like check number 8 for staples at 1650 click on it and mark it in blue
we're almost done what about check number nine for 150 check number nine $450 is here remember
they're not gonna be in the same order because they don't clear the bank in the same order in
which we recorded them but it's still there so we mark it in blue three more check or sorry deposit
from candy for two thousand is that they're two thousand two thousand going once going twice okay
there it is remember it's not the same order but when we find it we click on it and we mark it in
blue what about for Allen this three thousand is that there yes it is we click on it come back mark
it in blue now the most important moment there's only one left on the statement for six hundred
dollars and at this moment six hundred dollars is the difference that means at the moment we mark
the very last one on the statement that's the moment that we click it here and the difference
becomes zero notice we have two additional transactions that we recorded during February
that were not on the statement and because they're not on the statement we will not mark them off in
QuickBooks Online these will probably clear in the next consecutive month but the crucial moment was
the moment we marked off the last one that was the moment everything the the difference became zero
so we will click finish now click Joe actually we want to view the report here's the report
and if you click done you'll actually come back here and now let's take a look at what this is
and see what the history would look like after the second consecutive month the history is simply a
list of every prior reconciliation report for this account in QuickBooks Online it can help you see
exactly what happened in prior months so we can click history by account and we can see that it
actually breaks it down by year I'm recording this video in 2020 but I just went back and did a 20-17
reconciliation so if we had any in 2018 it would be listed here the 2019 reports would be listed
here and so on we can open up 2017 and now we actually see two reports this is the report that
was made when we did last month's reconciliation and we can look and see what was going on exactly
at the moment we did last month's statement now this is the new report that we can open and see
all the details of what's in our records at the moment that we did this month's reconciliation we
can click and view the report take a look at the categories and how everything is broken down so if
there's any kind of difference you can isolate exactly which category the difference is in
you