Quicken & Other Budget/Accounting Software/Opening Balance

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QUESTION: Hi,

This is actually a follow up from your response for the opening balance as below :

Your previous response :

First you will want to adjust the Opening balance as of 2/28 as follows:

Debit the bank account for the grand total of outstanding checks
Credit an equity account called Open Balance Equity

Then create one check for each outstanding check on the 2/28 bank rec
use the correct date and payee,  but post to open Balance Equity

When you do your March Bank rec, clear
1. The open balance per bank
2. Your Journal entry that totaled outstanding checks
3. Any of the checks that did clear that were dated before 3/1
4. All other amounts that cleared.

My question:

When i am doing the Mar recon, if i tick the total outstanding checks (debit $10k) and the list of check that i entered (credit-total of $10k), it doesn't make any different right? as the debit and credit is the same (zero transaction), and my bank recon still have a difference?

Please clarify, thanks.

ANSWER: I think that it might be a good idea to unclear March activity
And just do a 2/28 bank rec
So you would clear  everything  except
outstanding checks dated before 3/1

If this is off the 80,000 that you are off in March then there is
a problem with your balance per books as of 2/28.

I cannot advise you where to code the discrepancy.  It is a significant
value and you would need to check your manual bank recs against the
book balance and identify where the problem might be.

If you cannot find it, you need to discuss with management and your
tax advisors to determine what to do with the difference

Linda Saltz, CPA
Advanced Certified QuickBooks Advisors
http://www.qbalance.com

We sell and support QuickBooks enterprise


---------- FOLLOW-UP ----------

QUESTION: Hi,

How to do February bank recon as i started doing the accounts in March? i have entered the opening balance as of end February and i am starting fresh in March? The reason why of entering the above is due to unpresented cheque issued in February that appeared in March bank statement.

Answer
So you are saying that Your 2/28 balance sheet for this account
agrees to the bank statement ending balance 2/28?

If that is the case, then your discrepancy when preparing the
March bank rec will be an issue with March transactions and you
can work on my list of 4 suggestions to find the problem.

Linda Saltz, CPA

Quicken & Other Budget/Accounting Software

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Linda Saltz, CPA, QBalance.com

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QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com

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Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
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