QuickBooks Bank Account Has Never Been Reconciled! Bulk Reconcile is the Answer

Help!  How Can I Reconcile Years of Transactions Without Doing a Month-To-Month Reconciliation Since the Beginning of the Company File?

I frequently get this question.  This morning a follower sent an email saying that the bank accounts in her QuickBooks file had not been reconciled since the file was created in 2002.  She wanted to know if there is a way to do a bulk reconciliation or if she would have to start from the beginning and reconcile years of transactions since the beginning.

The answer is DO ONE LARGE BULK RECONCILE.

I prefer to do a BULK Reconciliation to the last or next to the last month of the year before my current year.  In this example, 2009 is still technically an open year because we have not prepared our Income Taxes and it is wise to reconcile the January bank statement before closing the year....just to be sure you have not failed to record any December activity that may have cleared in January. 

Here's how I answered her email using her example of 2002 - current:

• Select a reconciliation date - let's use 11.30.08 and record the ending balance from the statement

•  Verify that all dates on the entry page of the reconciliation agree:  Reconciliation Date; Bank Service Charge Date and Interest Earned Date....THIS IS VERY IMPORTANT! DOUBLE CHECK THIS BEFORE YOU GO ANY FARTHER!

• Place a check mark in the box inside the reconciliation window where you see the list of checks and deposits that allows you to show only the items as of the date of the currently selected bank statement (11.30.08)

• Make sure that your check & deposit columns are sorted by date

• Select "Mark All"
  

• Using the November 2008 bank statement, "uncheck" any items that are not on that statement....if they are not there, they didn't clear in November.

• Next, using the DECEMBER 2008 statement, double check that you did not "clear" anything that should have remained open until the following month.

• If you are sure that you have checked carefully and your bank reconciliation remains out of balance, make a journal entry to OTHER EXPENSE to balance the statement.  

(I use this method because the out of balance is the result of missing transactions that would eventually become Retained Earnings if they had been properly entered and cleared; and because I would like to post any historic adjustments to an Other account type so that a) I can easily locate and research it later and b) I can feel confident that the tax professional who will be preparing tax returns or reviewing company books will review any postings to Other Expense and make correcting entries for the adjustments I've made.

• Reconcile December 2008 using the same method.  This should give you a pretty accurate year-end bank reconciliation.

• Reconcile 2009 month by month to assure that you have accurate bank reconciliations for the most recent year and to "reset" your file and assure an accurate, sequential reconciliation process going forward.

Thanks Imelda for a Great Question
and a Great Topic for our Blog!

I hope this is useful information.

Got a QuickBooks Mess?  Call The QuickBooks Gal!

Got a QuickBooks Mess?
Call The QuickBooks Gal!

775-348-9225

jayne@qbgal.com

 Northern Nevada's Only 
Intuit Solutions Provider

Got Point of Sale? Want Point of Sale?
We have live versions in our office
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End of Year Record Retention Guide

End of Year Record Retention Guide

Getting ready to store your financial records for 2009?
Here's a handy guide to help you decide what to keep and what to toss.

Record Retention Guide
Type of Record	Retention Period
Bank Statements	7 Years
Business Licenses	Until Expired
Cash Register Tapes	3 Years
Check Registers	Keep Permanently
Canceled Checks	3 Years
Deeds, Titles, Title Insurance	Length You Own the Property
Financial Statements	Keep Permanently
General Ledger	Keep Permanently
Inventory Records	7 Years
Invoices/Bills - Accounts Payable	3 Years
Invoices - Accounts Receivable	3 Years
Phone/Utility Bills	3-6 Years
Property, Plant & Equipment Records	Keep Permanently
Purchase Orders	3 Years
Receiving Reports	3 Years
Tax Returns & Related Backup	10 Years Minimum
Time Cards or Tickets	3 Years
Travel Expense Records	7 Years

Got a QuickBooks Mess?
Call The QuickBooks Gal!

775-348-9225

jayne@qbgal.com

 Northern Nevada's Only 
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Got Point of Sale? Want Point of Sale?
We have live versions in our office
Call to schedule a trial demonstration!
775-348-9200

qbdoc@qbdoc.com

Do’s and don’ts for paying part-time employees

Do’s and don’ts for paying part-time employees

 Source:  The American Institute of Professional Bookkeepers; Bookkeeping Tips Newsletter

 

Do withhold FICA on part-timers, including retirees. 

Even if someone who works for you part-time also has a full-time job where they have had 100% of their FICA withheld for the year, you must withhold the full amount of FICA from their pay. These individuals can obtain a refund of any overpaid FICA on their 1040. Similarly, if a retiree receiving Social Security benefits works for you, say, one day a week, you must withhold FICA.

 

Don’t assume former employees who return part-time are Independent Contractors. 

If they do the same job they did before they left, especially in the same tax year, they are employees, not independent contractors.

 

Don't base worker status on length of service.  

A worker who fits the definition of “employee” is an employee and all employment taxes apply—even if he or she works for you only for a few hours on only one day, is still an employee.

 

Don't assume you must give benefits

To part-timers, or summer help or those hired for holidays. 

Nor are you required to include temps and part-timers in health, pension and other benefits. But to exclude them, have a written plan stating which benefits are not available to these workers.

 

Do define “part-time” v. “full-time” employees in your manual.  

For purposes of paying overtime under federal law, this distinction is determined by company policy, not federal law. Federal wage and hour law restricts only the number of hours worked in the workweek, when overtime must be paid (for each hour worked over 40 hours in the workweek) and the minimum overtime pay required, and the number of hours that children can work.

Got a QuickBooks Mess?
Call The QuickBooks Gal!

775-348-9225

jayne@qbgal.com

 Northern Nevada's Only 
Intuit Solutions Provider

Got Point of Sale? Want Point of Sale?
We have live versions in our office
Call to schedule a trial demonstration!
775-348-9200

qbdoc@qbdoc.com

Installing QuickBooks R9 - Update to New Version Window

If you haven't installed the New Update R9 for QuickBooks 2009 yet, please note that you may get a window that reminds you that you are upgrading the product and asks for your acceptance before proceeding.  Just check the box next to the "I understand......" statement and follow the onscreen instructions. 

Note:  If you have multiple company files in QuickBooks, you will have to do this the first time you open each company file.   

Additionally, once your update is installed on one computer, you must do this on all computers that have that company file if you wish to work in the file from a different computer...office/home office, client/accountant, for example.

For more information about this update, I've reprinted my recent blog below.

Major QuickBooks 2009 Update     

QuickBooks 2009 Release 9 (R9) Won’t Be Backwards Compatible with Earlier Releases of the 2009 Software

Intuit QuickBooks 2009 R9, going out live as an Automatic Update on December 1, has important improvements for both Accountants and their clients. It is strongly recommend that both users apply the update.

However, unlike other updates in recent history, this update will not be backwards compatible with earlier releases of QuickBooks 2009.

This update includes recent changes to tax tables and forms for many states. QuickBooks 2009 R9 includes a patch to the underlying QuickBooks database that further improves data stability in significant ways.

Specifically, QuickBooks 2009 R9 will take advantage of a new Sybase SA10 patch.

While QuickBooks is already remarkably stable, Intuit estimates this patch will remove many remaining data issues in whole or in part.

The update will also improve speed of execution for heavy users, as well as improve performance in selected reports.

Beyond the database updates, the release addresses a large number of specific issues.

Intuit currently expects R9 to be released as follows:

• Nov. 19, 2009: QuickBooks 2009 R9 release notes and the manual update are made available at the QuickBooks Updates site.
• Tuesday, Dec. 1, 2009: The Automatic Update is pushed out to appear as an update in-product. Users should be encouraged to allow automatic updates and to accept the patch.

Notes

The release affects Windows desktop versions of QuickBooks 2009 and QuickBooks Enterprise 9.0. It further affects backwards compatibility with earlier versions of the same software products.

Backwards compatibility in the QuickBooks 2009 Accountant's Copy includes previous releases of QuickBooks 2009 and QuickBooks 2008.

QuickBooks 2009 R9 will move the underpinnings of the QuickBooks database from Sybase SA10 patch 3712 to patch 3960. Intuit has tested the patch in multiple scenarios and found that with the patch, QuickBooks 2009 shows significant improvements in many areas of data handling, including those areas which are associated with rare instances of data corruption, especially among heavy users.

Got a QuickBooks Mess?
Call The QuickBooks Gal!

775-348-9225

jayne@qbgal.com

 Northern Nevada's Only 
Intuit Solutions Provider

Got Point of Sale? Want Point of Sale?
We have live versions in our office
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775-348-9200

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Free Tax Calendar From IRS

Did you know you can get a Free Tax Calendar from the IRS? 

When you visit the IRS site, you can click on the tab below the picture to order the wall calendar. You can order up to 5 copies!  

This is GREAT TOOL for bookkeepers and small business owners!

Check Social Security Numbers Online

Now you can verify current and future employee Social Security numbers online.   Enroll online, then you can access the SSA site to verify employee social security numbers.  Save time, eliminate hassle, verify online!

EFTPS - Sign up to pay your payroll taxes online
Easy to sign up, easy to pay!  Great for managing cash flow....you can schedule future payments and pay online.

QuickBooksGal Tip:  

Open a dedicated checking account and keep a minimum balance of $100 in the account.  Then a day or so before your scheduled tax payment, transfer the funds to cover that payment into the "Payroll Tax Checking Account". 

I prefer not to have outside entities accessing my primary business account.  I use a separate checking account for my payroll and payroll taxes.  

Using a dedicated account for payroll, EFTPS and State/Local payroll taxes that are paid online limits my potential loss to whatever cash is in the account should the IRS, or any other authorized accessing entity make an error.  

It is also a safeguard should a dishonest employee attempt to forge or alter a paycheck...they can only get what is in there....my operating account is protected.

Got a QuickBooks Mess?
Call The QuickBooks Gal!

775-348-9225

jayne@qbgal.com

 Northern Nevada's Only 
Intuit Solutions Provider

Got Point of Sale? Want Point of Sale?
We have live versions in our office
Call to schedule a trial demonstration!
775-348-9200

qbdoc@qbdoc.com