do you have trouble finding common bank reconciliation mistakes well during this
fourth consecutive month of bank reconciliation we will
be discussing the most commonly made mistakes and how to find and fix them
if you have any questions about this topic you can leave them in the comment 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
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the time common bank reconciliation mistakes can be broken into two categories mistakes that we
cannot see and mistakes that we can see a mistake that we cannot see would be a cheque that cleared
on the bank statement that we failed to record into QuickBooks and the more challenging mistake
that we cannot see is when we clear the wrong cheque because it has the same money amount as
a cheque that did not clear now we will address those in one moment but the good news is there
are mistakes that we can see just by looking carefully for example if the same transaction
in both places has a transposed number if we look carefully we can find that difference
if the change column is wrong because very often people who record transactions quickly sometimes
leave out the cents or leave out the change at the end of the number and the last mistake that
will be available for our eyes is when the money amount winds up in the transaction number field
and the transaction number winds up in the money field these are things that we will address one
by one right here in this video first let's remind ourselves of the process during the month we are
recording the same transactions that the bank is recording and then we do bank reconciliation
and establish a cleared balance but if you clear the wrong cheques because it has the
same money amount what you will have is a check that should be cleared that isn't and a check
that is cleared that should not be let's imagine that check number 75 is cleared and should be and
check number 61 to rex repair is not cleared and should not be but if you make the mistake and you
accidentally cleared check 61 and did not clear check number 75 that means check number 61 is
part of the cleared balance and check number 75 is not now what if the top text here does happen
what if Rex waits too long and check number 61 needs to be voided and issued again to Rex will
now wait a minute if you void this check that means that you're voiding something that's part
of the cleared balance and you're not supposed to do that how could a clear check never be deposited
well that's how you know you have this mistake what's the solution the solution would be just
clear check 75 and unclear check number 61 once you've found the mistake and found the
transaction with the same money amount you'll be able to do this the way we showed in the register
window in a previous video then if we actually let's see it twice because that was a lovely bit
of animation now you may ask yourself why are we voiding a cleared check well we must have cleared
the wrong check for the same money amount if you look for the check with the same money amount
and then clear that check you should unclear the wrong check then you could void the check
that's really uncleared and go ahead and resend it and you don't have to worry about messing up
the cleared balance now what about this other mistake that is not immediately apparent there's
a clear check on the bank statement that was not recorded into QuickBooks well first you have to
find the physical or deposit slip for the deposit or check that's on the statement that you did not
record in your QuickBooks Online Records if it's legitimate just enter it that's all you have to
do leave the bank reconciliation window go and enter the transaction that you forgot or failed
to record then go back to the bank reconciliation window and continue reconciling but if you try to
look at the check or try to look at the deposit slip for something that's on the statement but
not in your quickbooks online records then it might not be legitimate if not call the bank
and discuss the wrongful transaction that has been charged to your account on the statement that you
are reconciling have them re-- correct it and then of course send us a corrected statement and that
would be the way to address the issue of something on the bank statement that's not legitimate and we
should not record in our quickbooks records you may well note the fact that it is it is the bank
reconciliation process that helped you find that incorrect charge what I can give you practice with
are mistakes that your eyes can see for example a transposed number for the same transaction on the
bank statement as well as in quickbooks online or a transaction that's missing change or has
the wrong number in the sense or change column as well as a transaction where the money amount
is in the transaction field and the transaction number is in the money field those are things
that we can practice on April's fourth consecutive month bank reconciliation so I'm going to give you
practice finding and fixing go ahead and open the sheet named incorrect April bank statement
try to find the three mistakes mention by doing the reconciliation matching process after you
find all three mistakes you should open the sheet named corrected April bank statement edit what you
have done already in the April wreck and complete the April bank reconciliation with the corrected
statement and don't forget when you start using the corrected statement you have to click edit and
update the ending balance for the correct ending balance for the new statement that you're using
now at this point you should pause the video and try doing the April bank reconciliation find the
mistakes first then after you've identified the mistakes go ahead and reconcile if you found all
three mistakes on the bank statement and finished April reconciliation you do not need to watch the
rest of this video I will now reveal the answer and demonstrate April's bank reconciliation and
the three mistakes on the incorrect bank statement are in row 8 check number 19 should be $30 instead
it says this is check number 30 for $19 so that's one mistake down the next mistake is in row 14
this is three hundred and fifty dollars even for some reason the data entry person at the bank put
in three hundred and fifty dollars and 35 cents and the last mistake is here in row twenty two
the mistake is the transposed number check number twenty is not $2,100 check number twenty is $1,200
but instead the bank took two thousand one hundred from your account instead of one thousand two
hundred like it was supposed to when we refunded candy so the bank basically stole the difference
between twenty-one hundred which they did Tay and the 1200 that they were supposed to take so
go ahead and open the corrected statement and now let's do the April bank reconciliation together
so here we are in the corrected statement with the numbers changed back to the way they should be and
in quickbooks online we'll click the cogwheel and we'll go over to reconcile now you probably will
click resume reconciliation what you'll have to do is you'll have to edit the ending balance in the
place I'm about to show you but I'm putting in the ending balance for the first time and we're gonna
come over here and obviously the ending date is the same as the last ending date plus one month
so instead of typing it in well April only has 30 days so here we go now I'm going to click start
reconciling and we see we have the difference but what you would have to do if you were doing
the corrections and putting in the wrong statement you would have to click Edit info and put in the
adjusted and corrected ending balance from the new bank statement that you just received after
complaining to the bank about those three mistakes now we can go one by one and mark off everything
that has cleared remember the procedure the safe thing to do is just highlight this in the bank
statement what was it oops it was 26 60 and then Mark it off in QuickBooks and only if it's marked
off in QuickBooks come back and mark off the item in the bank statement okay let's see if I can do
that and you can fast forward the video eighteen is thirty dollars well I know check eighteen is
thirty dollars he here good let's see 19 was also $30 don't want to confuse those what if one clears
and the other one doesn't like we talked about now we have the 6000 a halo a little mark this
excuse me was supposed to mark these off now what about this $6,000 highlight in Excel check it off
in QuickBooks and then mark it off back in Excel let's examine this hundred and twenty dollars
yes it's here so we will mark it off on the bank statement okay what about this hundred dollars to
Staples check number 61 yup no problem there okay what about rex repair check 62 for 250 it's in
quickbooks online for the same amount so we mark it now what about UPS 150 check 65 yep see they do
not clear in the same order that's the lesson of the bank statement staples check 63 for 350 yes so
we come back and mark it off what about Verizon 895 okay scroll down a bit yep there we go and
mark it okay what about 150 to UPS there it is a
deposit okay and if it's the same in the bank statement we mark it
4,300 okay that's a deposit of several customers payments that's why it says
split but it's the same in both places so there's no issue here
400 a check to rex repair looks the same in both places
Karn Edison the thousand dollars that's probably a
refund let's see yep that was the refund from con Edison staples a check for 833
market in the bank statement we're almost done we're ready for the grand finale 500 reese's
repair shop on that very special day 420 okay what else should we mark off how about change it to
blue mark or 420 okay the 1200 that we corrected is still here but this time it's correct for check
number 20 so this time we'll mark it off and we saved ourselves some money they're getting down to
the end $1700 deposit from Verizon that also was probably a refund for 25 what we only got a couple
more 725 from Staples there it is notice there's only a $50 difference now and we're getting down
to the wire with two left now we have one left after this 500 that we mark off here and the
difference is 450 so let's acknowledge in the bank statement now there's a $450 difference up here
and one left for 450 down here so at the moment only at the moment that we mark this off only at
the moment the very last one is marked in the bank statement and matched in QuickBooks that's the
moment that we are finished with a zero difference now we can click finish we can browse our reports
and see exactly what was the condition of all the categories of transactions in the entire
QuickBooks Online account for this bank account at the moment we did April's bank statement