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How can I go back and adjust what by accounts balance really was at the beginning of the year?

Posted on 2012-03-22
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Last Modified: 2012-06-21
I have a  quckbooks file that was started at the beginning of last year.

I just noticed that because some deposits were not recorded, the balance that quickbooks had in my checking account at the beginning of the year was not the accurate one.

How can I go back and state that as of 1/1/12, the balance was really XXXXX.


Thanks
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Question by:strugglingalong
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Expert Comment

by:John Hurst
ID: 37755412
Sorry, you cannot do that. Bank Accounts are critical to a business, so QuickBooks locks the beginning balance in order that the Bank Reconciliation work correctly. It has been like this for years (probably as much as a decade at least).

So how to move forward? Two ways:

1. If the error is small, put in the ending bank balance from your current bank statement (say February 29) and then make journal entry into the bank account and miscellaneous expense to reconcile. Now you are good going forward. Small = $100 maximum.

2. Open the reconciliation module and unreconcile backward until you reach a reconciling point. Then re-reconcile going forward. This can be time consuming if more than one or two periods and lots of transactions in each period. It is the best way, however.

... Thinkpads_User
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by:strugglingalong
ID: 37755449
To tell yo the truth,

It appears that midway through last year, no deposits were recorded (it is all in undeposited funds) and a all the electronic payments were not recorded.

So now the difference is QB has it in the negetives, while in reality it is in the positive, About a $40K difference
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John Hurst earned 2000 total points
ID: 37755466
Thanks for the update.

So from a controllership point of view, your bank account (in the QB ledger) is a mess.

Since I have been here before with clients, the best thing for you to is to unreconcile back to a point where the bank account was reconciled (or the difference is inconsequential). This should be before the point where deposits and payments stop being recorded.

Take the earlier of the two points and reconcile the bank account.

Now enter the deposits from undeposited funds (enter by date, not all on one date). Then enter the electronic payments by date. Use your bank statements to help you here. Make sure any bank charges and other transactions have all been entered. You may have pre-authorized deductions for example (loans and like payments).

Then go back and reconcile month by month.

This is all a necessary step and I encourage you to review this with your accountant.

... Thinkpads_User
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Expert Comment

by:John Hurst
ID: 37771413
Hi strugglingalong   - Any update?  Did you speak with your Accountant?
... Thinkpads_User
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LVL 98

Expert Comment

by:John Hurst
ID: 37827083
Thank you. I was pleased to assist and good luck getting your bank reconciliation sorted out (It is really important for you).  .... Thinkpads_User
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