Beginning Equity and Checking Account Reconciliation


B

Bill Bickner

Our club books were set up in QB three years ago at the beginning of the
fiscal year. I couldn't reconcile the checking account in QB when I started
keeping the books last year. Beginnning with the first entry I checked every
deposit and check, corrected some errors, and got it to come out OK, but
ended up with twoother problems.

With deposit and check entries corrected, the bank account Opening Balance
Equity and Building Improvements Costs were different than the closing
amounts for the previous year's paper records, which seem to be correct. It
appears that this is due to checks and deposits entered in the paper records
that did not clear the bank until the following FY. How can I fix this?

Thanks for your help.

Bill Bickner
 
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T

Tom Healy

<< Our club books were set up in QB three years ago at the beginning of the
fiscal year. I couldn't reconcile the checking account in QB when I started
keeping the books last year. Beginnning with the first entry I checked every
deposit and check, corrected some errors, and got it to come out OK, but
ended up with twoother problems.

With deposit and check entries corrected, the bank account Opening Balance
Equity and Building Improvements Costs were different than the closing
amounts for the previous year's paper records, which seem to be correct. It
appears that this is due to checks and deposits entered in the paper records
that did not clear the bank until the following FY. How can I fix this?
You need to enter those checks and deposits in their correct prior year dates;
then when you reconcile the account as of the month end after they have
cleared, things should be OK.

Once you've got everything right, I suggest you set the preferences to "close
the books" as of the end of 2003. That way, future treasurers will have a
reminder if they try to enter a transaction in an earlier period. That won't
stop this, but if everyone knows that there has to be a really good reason to
go back to earlier data, it will prevent discrepancies.


--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: (e-mail address removed), since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772
 

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