Bank Reconciliation Balancing Tips
Be sure all cleared entries match to a bank transaction. If an entry is certainly not from the bank If you want to know How To Reconcile Payroll In QuickBooks then call our experts.
statement, mark that entry as Open.
* Be sure all bank transactions are accounted for with an entry in the Check and Bank
Reconciliation screen. If you have no entry into the system, go into the transaction in to the Manual
Deposit in Transit section in the Bank Reconciliation tab.
o An exception for this is any automatically cleared items. Typically, this will be the direct
deposit withdrawals, but can likewise incorporate PR EFT remittance checks.
* Unjournalized records ñ Make sure all receipts, checks, and just about every other journal entries which could
impact cash are journalized and posted. This includes programs linked to CR like MR, UB, and
Tax.
* Check the previous monthís bank rec ñ Verify the bank rec through the previous month continues to be
balanced. It is possible entries were back dated, causing previous bank reconciliations to no
longer be balanced.
* Verify all outstanding items from the previous month carried to the current month.
o If a Miscellaneous Transaction is older than a few months, it will no further show as an
outstanding item. If that item is really still outstanding after half a year, it'll need to be
added as a Manual Deposit in Transit regarding the Bank Reconciliation tab.
o Make sure all Manual Deposits in Transit are still outstanding in today's month or
are cleared items either through bank activity or correcting journal entry.
* Check Payroll Direct Deposit Activity ñ In PR, run the Check Register report for each payroll that
month. Compare the direct deposit total to your withdrawal from your bank statement.
* Confirm check totals to journal entries:
o In AP, run the Check Register report for the bank being reconciled. Compare the Check
Register disbursement total towards the Cash Disbursements total on the Bank Reconciliation
report.
o In PR, run the Check Register report for the bank being reconciled. Compare the Physical
Check Amount total in addition to the Direct Deposit total to the Payroll Disbursements in the
Bank Reconciliation report.
* make certain there are not any differences in Deposits
* Double-check Balance Per Bank matches the bank statement
* Verify cleared check total to total debits on bank statement.
o Take the full total debits from the bank statement and subtract any debit transaction on the
bank statement that will not come in the Check Reconciliation tab. This will be direct
deposit debits, PR EFT remittances checks (if they're automatically cleared), any debit
that will not have a matching entry in GL, and any debit recorded into GL as a manual
journal entry.
