In this presentation, we will prepare a bank reconciliation for our tax deduction problem using the accountant classes method, we're going to enter some last few transactions that we will need to do to finish up and complete the bank reconciliation. We will do this within QuickBooks. Here we are on the homepage, we currently have the open windows open. In order to open the open windows, you want to go to the View drop down and select the open windows list. We're going to go through the bank reconciliation process. In order to do that, we're going to take our bank statement that we have been filling out and using to enter the information directly into the check register.

And now reconcile because we've been using this report the statement to enter the information directly into the check register a cash basis method, more of a cash basis method were completely dependent on the bank in this method than this. This is bank reconciliation. It's not going to come out with outstanding items, but it's still in there. necessary, because it will show us if we missed anything. And in our case, we haven't included a couple things like the deposits and these two items down here, we're gonna have to add those as we go. So we'll go through the bank reconciliation process back to QuickBooks.

To do that, we're going to start by going to the banking drop down, we're going to go to the reconcile banking and then reconcile. And then the beginning balance should be the same, whereas of 331. So we've done two months of reconciliation, we're on the third month of reconciliation, the beginning balance should be the same. If it's not, then you can have to do something about that, too. And you might have to make an adjustment and draw the line here going forward to do that, but if the beginning balance is the same as it is, in our example problem, we should be good going forward. We just now need the ending balance, which is 4346 43046.

If I can remember that 43046 Okay. Now we're not going to have any bank service charges or interest earned because I like to not use these and put them directly into the check register, rather than using these because it confuses me. So if I suggested it could confuse others, as well as, although others don't get as confused as easily as I do, but still, I would rather put it directly into the check register. So I'm going to continue here with that. And then we're going to go through and then just tick and tie these off. Remember, as we do this, it's best to go from the bank statement to the QuickBooks file, not the other way around.

It seems like the same thing, but it's a little bit different. So you want to go from the bank statement to the QuickBooks file. Okay, so we're just going to check these off. We'll do this a bit faster this time because we have seen this before. So we're going to go to the 520. And then here's the 520.

I'm going to cross this off. We're going to go to the 98 and then the 250 and the 65. Let's see if we can find all three Those at one time quite ambitious, the 98 to 250 and the 65. And then we'll go back over here and highlight those, say we found that and have to do this, make that half highlighted, then we get the 320, the 900, and the 100. Let's do all three of those 320 900 100. This is this should be really easy because we again, we entered the data directly from the bank statement using a cash method.

That's why this is. And if that wasn't the case, the bank reconciliation process wouldn't be quite so easy, because we'd be comparing two different data entry books, in any case, 1000 5101 25 and 1005. And this might be a method that we might use in practice, but just notice, it's a cash basis method. So then we're going to close these out or highlight them and then 14 598 and 514 598 and 500 z I'm going to highlight those. And then we've got the 195 37 1001 9537 1000. And we will then highlight those.

And then we've got the 346 3539, and the 630-346-3539. And the 630. Done. All right now we have what we haven't gotten yet, are these items. And so we're just going to go ahead and add those and we didn't add the deposits yet. So okay, we need to do those to reconcile.

So that's what we'll do. I'm going to go back to this. We're going to go to the check register now. So we're going to go to the banking drop down, we're going to go to use registers. And then we're going to add another item and it's going to be as of the end of the month. Oh 330 119.

It's not going to be a check. I'm just going to say like other or you don't just don't put a check number there. And then we want this to be four, three. hundred dollars 300. And it's a draw. So I don't know what the owner did, they took money out.

And typically I would assume they took money out for their own personal usage unless they told me otherwise. And therefore or if it's us if it seemed like took money out for my own personal use or unless I recorded otherwise. So it's going to be a draw here an equity account, not an expense account. If it wasn't expensive, I, if I drew money out and spent it on, you know, some business related thing, then I'd have to know what the expenses and of course categorize it. And so that's going to be that one. And then the last one we've got is the 150 for bank charges.

So 150 I'm gonna say other and I'm just gonna say 150 and bank service charges. It's an expense type account. 150 seems like a lot for bank, sir. Okay, anyway, so I'm going to enter that. Those are those two, we're going to go back to the bank. Reconciliation, and change and just check those off.

So there's the 300, the 150. So we'd have those now. And now we're out of balance by the 19 520. That should look familiar. That's the deposits. So now we're going to enter these three deposits, which have to, at least are in March this time, that hasn't been adjusted by our by our team, which is nice.

So we're going to go back over here and say checking account. And then we will then say this is on three, five. So this is Oh 30519. This is a deposit. And we're going to put it on the deposit side and that's for 5300. So 5300, and all deposits we're assuming unless told otherwise, is income, which we're calling sales, sales income.

Done. Next one 315 four for 800. So I'm going to say three If it's gonna be a DDP deposit deposit side for 800, I believe was it. Sales? Right? Yeah.

Sorry, I jumped over there again. But yeah, for 800 sales is our revenue account. That's our revenue account. That looks good. Alright, so we're going to say next one, last one and then we have to stop this because we only get to do one more. So 325 is the date 325.

Then we're on the deposit side and the deposit is 49420. So deposit of 9420. Once again, sales or income is the account, we will assume all deposits will be unless told otherwise. So we're going to say okay, there it is. And we're going to go back to our reconciliation, the bank reconciliation, and just check those three off. So there's the five three, the four Eight, the 9420 bringing us to zero in the reconciliation, meaning we're reconciled now, which is nice.

And therefore we can just select reconcile. So note that everything tied out perfectly because we entered everything from the bank statement. But doing that allowed us to pick up any data entry errors. So it's still important to do the bank reconciliation, although it's a bit different process than if we were doing the full bookkeeping cycle. So there we have it. Here's our bank reconciliation report isn't too impressive, because it should just match exactly what what's on the bank statement, because that's what we put in here.

But it does tell us that that is indeed the case. And therefore we want to reconcile we want to make sure that our books are exactly what's on the bank statement is basically what the reconciliation is telling us. There's no outstanding items, because we haven't been recorded the items as we do them. So there's no outstanding checks there are in reality There's checks we've written that haven't cleared, but we haven't recorded them. We don't record them until they clear under the system we have here. So here's the more detailed one.

It looks like a lot of information, but it's really just telling us the same thing that's on the bank statement because that's exactly what we put into the system. There's no outstanding checks or deposits. So there are there is the bank reconciliation.