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Reconciling Your Credit Card in QuickBooks Online - My Cloud Bookkeeping - YouTube
Channel: My Cloud Bookkeeping
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hi kerry here from my cloud bookkeeping
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i work with small businesses and
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entrepreneurs to help them to keep their
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records in order using quickbooks online
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so they can make their sales tax
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payments on time understand their
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business have reports that help them
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manage their cash flow or on a regular
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basis
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and today we're going to talk about the
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really really important function of
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reconciling we're going to walk through
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the example of reconciling a credit card
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but the same thing counts for
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reconciling your bank account what
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reconciling does is it makes sure on a
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regular basis that your records agree to
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the bank's records now
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what we're assuming is that what the
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bank has is correct and we're comparing
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it into quickbooks and that's very
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important we we don't want to be going
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the other way so we're going to obtain a
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statement to compare to quickbooks and
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some of the reasons why
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the records might be different other
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than the bank error we'll assume the
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bank has not made an error is if you've
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added things from the
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bank feed your connection to bank from
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the bank to quickbooks twice that
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happens a lot i call them duplicated
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transactions if you do have a problem
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with that check the link below it can be
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quite time consuming to clean up and
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i've created a course to help with that
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so that can be one of the the ways that
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things go wrong another thing is if
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you're using expense capture software
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such as hub dock or receipt bank
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sometimes it comes in
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one way and then you enter it another so
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you've got something sitting here it's
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unpaid but you have an expense you've
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added here just things can get messed up
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and when you're doing your
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reconciliation as you'll see when we
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move into the steps you're able to
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select the items that are on the
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statement and see if there's anything
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left over because you think about it if
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you've added something from software and
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you've added it from your bank feed it's
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going to be in twice your profit number
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won't be correct your expenses will look
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too high and you can't make good
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decisions because you don't actually
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know how much money you owe on that
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credit card so let's have a look and
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walk through the steps now
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before you reconcile it's always
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important to make sure you've dealt with
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all of the items that are showing up on
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the bank feed because if you have things
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here that you have not yet recorded
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obviously you you records won't be
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complete you won't have things to
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reconcile i do have a checklist it'll be
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in the downloads it's something about i
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don't know steps to take before you do
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reconciliation or something check that
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out so now that we're here we have a
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number of different options to get to
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reconcile we can click here and choose
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reconcile we can pop up here and choose
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reconcile
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or i don't know why this is my favorite
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i always pop into the register and click
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reconcile here
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so the first thing you're going to want
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to do is have a look at your statement
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and make sure that the beginning balance
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agrees so
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this here is the statement balance from
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the 31st of july it will be the opening
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balance on the statement you look at now
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now often credit card statements they
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don't have a nice clean month end it's
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going to be the 5th of august to the 6th
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of september or something like that but
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just make sure that whatever this
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beginning balance says
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is
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the opening balance on the statement
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that you're looking at i hope that makes
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sense
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so then you want to read the closing
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balance on the statement you have so
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i've done that with my fake statement
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and mine is always also at the end of
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the month because it's not real we're in
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the fake company so i'm going to click
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start reconciling
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and here's what's happened it's popped
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in and it's decided that everything
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that's green here that's come from the
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bank feed is correct and everything that
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hasn't is not
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and i can very easily see how to fix
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this 1000 difference i click this right
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here but that doesn't really help us
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with our exercise because imagine if
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we've got i don't know 50 100
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transactions here so i would be happy
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now if this was me but if it was a
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larger exercise and i didn't really know
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what was going on i would put a check
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mark here i would select everything and
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then i'd put a check mark here to
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unselect everything or deselect
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everything the reason i do that is there
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could be
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items like this hiding on another page
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so you might think you're starting clean
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but you're not actually so if you're
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going to go through the process where it
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doesn't agree when you very first open
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this
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then this is the way i would make sure i
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was doing that so i would then look at
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my statement i'm going to look at my
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statement and see the payment of 1000.
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not sure why that wasn't on the bank fee
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but anyway i'm looking at my statement
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and i'm seeing this one i'm looking at
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my statement i'm seeing this looking at
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my statement seeing this so notice we're
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going from the statement two quickbooks
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not the other way around and here we go
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here now what do i have here i have a
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credit card credit
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on the 30th of august that for some
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reason has not gone through yet and then
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i have a purchase on the 31st of august
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now when these items do show up on the
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bank feed they should match and it does
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make sense perhaps this is a weekend and
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the items haven't been posted yet
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whenever you have unreconciled items
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just just look at them do they make
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sense is it old like for example if this
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here was dated the 30th of july i would
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treat it very differently i would either
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be following up to see why i didn't get
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my credit
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or i would be wondering if i've entered
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it twice or made a mistake so anything
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that's that's white and hasn't been
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included in the reconciliation
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is normally it's always something you
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want to consider why and it might be
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something that requires further action
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but here it's just simply near the end
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of the the statement date if it doesn't
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clear next month then i'll be concerned
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now if you do have a lot of old white
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items there it's important you do
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investigate them because they're making
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your results inaccurate for example here
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this 156 dollars for utilities if this
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never comes through on the credit card
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then maybe i've recorded it twice and
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maybe it's fifteen hundred dollars it
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could be anything and it's overstating
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your expenses so anything that doesn't
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clear does need to be looked at and
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that's extremely important some people
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get to zero here they're super excited
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and then they have just lines and lines
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and lines of items that are unreconciled
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and they're recorded as expenses so
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their credit card balance is wrong but
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also their expenses are incorrect and i
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do have a course for finding and fixing
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duplicated transactions because it is
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the most common error i see so if that's
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a problem for you check that out there
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should be a link below and if you've got
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this all done and it's so beautiful
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that's fantastic you can click finish
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now and it's all done
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so as i mentioned earlier there is a
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course for if you have doubled up
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transactions which hopefully you don't i
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also have some free downloads
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there's a checklist what to do before
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you do your reconciliation i have some
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other things on matching from the bank
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feed so check out the resources below
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hopefully they will help you and if this
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video was helpful click like subscribe
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to my channel cheers
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you
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