QuickBooks Online: Cleaning up old uncleared transactions from bank or credit card reconciliation

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[@aliciaspilde676]

I recently started helping my partner with his QBO and I can't thank you enough for this video. It helped me clean up the company file as far back as 2014 when errors were made. I appreciate this so much, thank you!!!

[@HectorGarciaCPA]

Great to hear!

[@margaretngure5642]

Thank you so much Hector, I was able to reverse so many transactions that were pending

[@HectorGarciaCPA]

Great

[@angelamarie2947]

Thanks again for another great tutorial! I always learn something new when I watch your videos.

[@HectorGarciaCPA]

Great

[@stephanietrusler4042]

This method clears the prior year transactions by reducing the same category(ies) of expenses in the current period. Is there a way to avoid understating current year expenses? Or are you accepting that you overstated expenses in the prior tax year so you are understating them in the current? Thanks, Hector!

[@lonelyman6192]

very useful and helpful, I was having for sometime trying to figure this out!!! You saved me a big headache

[@HectorGarciaCPA]

Great 😌

[@lorif894]

Great videos. I actually called last week and left a message asking for a call back. First call the rates in the YT description started at $250. 24hrs later when I called again (1st call hadn't been returned) the same video now said $275. No phone call back from that message left either. Today, retrieving your phone # on this video to call a THIRD time, the rate is $500. Apparently $500 is the magic number for not going to the answering machine: someone picked up the phone on the 1st ring! Now rates for other consultants through you/your company were quoted at a minimum rate of $325 ($350?). What a difference 6 days make hmm?

[@tony6694gmail]

Saved me a big headache I was having for sometime trying to figure this out!!! Well explained video and the circumstances on when would it be appropriate to do this!!!! Gracias Hector!!! Importing to QB online from Desktop very big deal!!!!

[@HectorGarciaCPA]

:)

[@sharonflier1396]

Great explanation. Thank you so much!

[@LM-tz9js]

Thank you for your video, but what if Accounts Payable is involved. I need to void a check. I created a GJ entry, but now I see that transaction on the AP aging report. Can you recommend a better way to void it . Thank you

[@hometownaccountant]

If AR or AP is involved, you have to create a clearing account

[@shahnawajshaikh4624]

Great teaching style

[@liezelp4391]

Hi Hector the journal entry understates the current year's expenses and overstates the previous year's expenses. Is my observation correct?

[@adra605]

Do you have a version of this video for non-accountant users? I do not see the Gear option with the sub-options like the CLR field that you are referencing in my non-accountant version of QuickBooks online. Thanks much.

[@HectorGarciaCPA]

No, this is only focused on accountants

[@Pancake3399]

Great vedio

[@HectorGarciaCPA]

:)

[@jessicavillanueva8448]

Very helpful thanks!

[@alainroybaradas5517]

Hi! I tried to do the same. Created JE (credited expense and debited the bank account). But when I go to the reconciliations, it shows the uncleared checks and the JE that I created but there is no circle to tick off (check/uncheck) to include them on the reconciliations.

[@DeniseRodriguez-uh6nc]

What if there is hundreds and hundreds of floating transactions? is there an easier way than listing each and every account that didn't get cleared?

[@HectorGarciaCPA]

Not an easy way.

[@dswilliams69]

Hi Hector, quick question. My QBO business bank card balance has been off by $12 for several years. How can I fix that?

[@HectorGarciaCPA]

Journal entry

[@raymohamed3368]

Thanks!!!

[@HectorGarciaCPA]

You welcome

[@marlenepisani9887]

Hi Hector,, thank you for your content,, I am wondering how the best way to post fraudulent activity,, such as unauthorized withdrawals and credit card purchases, fake expenses, cash withdrawls (no receipts) and a new one I have never seen before but redirected accounts receivable,, some how this previous bookkeeper was posting the invoices into the business she was doing the books for, but getting the customer to pay her directly!! then she was fudging the bank reconciliations, this is the worst case I have ever been involved in ,, obviously taxes will be involved as well , there's that to deal with as well

[@HectorGarciaCPA]

If you will never recover it, send it to Bad debt expense

[@glendagarcia9303]

Thank you Hector for all your wisdom! I need your help with something i have been struggling with. Can you tell me what the difference is between an uncleared transaction and an unreconciled transaction? I run two separate reports to review each. Is there a way I can get both on the same report?

[@HectorGarciaCPA]

Unreconciled could be cleared or uncleared. Uncleared is always Unreconciled. Cleared means it was downloaded through the bank…. But they are not always reconciled yet.

[@scarletp6971]

Hello Hector, I am having trouble with one transaction. 2022 is the first year we have used quickbooks and 2021 was done manually. Now, in 2021 there was a check issued for an independent contractor and when I filed his 1099 I included this check. Then, I noticed the bank entered the wrong amount for said check and the rest was charged in my bank account at the beginning of 2022. My problem is I don't know how to fix this to avoid messing up reconciliation. Quickbooks is now linked to my bank account and I see this transaction (rest of the amount of check issued) in 2022 statement even though this money was filed and reported in 2021 taxes. I hope you can read this comment! I would really appreciate your help. Thank you so much!

[@janeh5949]

so, do the j/e in the current year?

[@HectorGarciaCPA]

Yee

[@rplayer77]

I don't understand why did Hector put 1/26, 1/27 as the date on the reconciliation. Why not 1/1 or 1/2?

[@HectorGarciaCPA]

Could have been an error..

[@ianphillip241]

Unsure if you actually read the comments, but would this not throw off your Income statement? I have done a test journal entry/recon and now it is showing that my income has gone up by the amount of the cleared transaction. Thanks in advance!

[@HectorGarciaCPA]

Yes of course.. you will be adjusting the sins of the past; and paying for them in the present :)

[@srcwilliams29]

What about a different scenario when the check cleared after you do a journal entry to clean your old transaction?

[@HectorGarciaCPA]

They you recreate the check

[@AmazingTipsNailsLauraMKoch]

I have deleted duplicated transaction but they keep showing up. What am I doing wrong?

[@HectorGarciaCPA]

Maybe they are setup to automatically create via bank feeds rules?

[@lamatchacafe8323]

Hector, do you have a video on how to do this in Quickbooks desktop?

[@HectorGarciaCPA]

No, but the concepts are 100% identical

[@mehzar6379]

How to import specific transaction from bank statement to purchase of quick book?

[@CassandraMeffert]

My friend who is a book keeper suggested I watch your videos, as I am brand new to this type of work. So very helpful. Much appreciated! In some of your videos you mention reaching out to you for discounts. The home building company I work for has Quickbooks Online Premium & we have started a landscaping business, separate LLC. I am going to make another Quickbooks to keep track of that business although they run closely together. Any suggestions on how I should set this up. Is 2 businesses under the same account the best way to go.

[@HectorGarciaCPA]

Yes, its going to be two separare subscriptions, but you can definitely access them on the same login

[@carolmalin3125]

This part really confuses me....and I've see something similar on other videos. If those transactions were recorded, or any transaction for that matter (a check, etc) and are toward the end of the month, couldn't they maybe clear on the next month's statement? I don't understand deleting or adjusting them off. Thank you! Greatly appreciate your videos

[@HectorGarciaCPA]

Because they were errors or duplicated

[@carolmalin3125]

@@HectorGarciaCPA Ahh, Gotcha, thank you!

[@kyleeheinz962]

I am so stuck on what happens if from your business checking you tried to make a payment to your business credit card (but you accidently did it from savings) so the payments kept getting declined. How do I "clean up" all these return payments. There is a like 5 of them.

[@HectorGarciaCPA]

Its hard to explain though here. But a payment that leaves and comes back.. is basically a net null transaction, so you can categorize both to the same account or just delete both when they are on the same month

[@user-sj2pc5iv4k]

Thank you for the video! PLEASE help :) .Why does my CREDIT CARD balance show $0, but in QBO $2404? When I reconcile, and check all transactions, it shows a difference - $2404. I do not have a beginning balance, it is a new account, I set up an opening balance $0. The ending balance and dates are correct. EVERY BANK STATEMENT TRANSACTION matches the amounts in QBO. Where is the mistake :( ? What should I do? Should I create a journal entry? What entry? But I want to understand the problem. Thank you.

[@HectorGarciaCPA]

Not sure, would need to see it

[@user-cb1gh7ss5h]

Why wouldn't you just delete the line instead?

[@HectorGarciaCPA]

Because if is from a previous period, you will affect previous financial statements; and they wont match your records/tax returns etc.

[@rhondadavis8012]

Hi Hector, I have this situation of old (prior years) transactions where taxes have been filed, but are still unreconciled. Does “reversing” these old transactions have an impact on the taxes for that year? So if there is an audit they will still show on record for the reporting period? Thank you for your help. Rhonda

[@joanneenriquez1767]

Hector mentioned that will need to reverse the transactions at the beginning of the following year which is Jan. 1st so it will not affect the previous tax return filed.

[@kaycali4912]

So if I exclude a personal transaction that I actually didn’t use for business, it wouldn’t mess up the balance or throw any amounts off?

[@HectorGarciaCPA]

Yes if would. You can include them and categorize them as a distribution

[@kaycali4912]

@@HectorGarciaCPA do you have a video on how to do this?

[@woodcutart]

Hector, does it have to be the same account "Repairs and Maintenance" that you reverse it against? What if the account becomes negative when you run a profit and loss report? Or what if I get a negative income?

[@HectorGarciaCPA]

It happens, you need to deal with that concequence

[@reaganhernandez5861]

I have a major problem.. Jan to April I had to manually upload bank feeds, May I finally got the bank connected. Then there was like 13k more and the manual account was showing up on balance sheet. The quickbooks people merged the accounts which made the balance way more.. I can no longer see Jan to April transactions, and they made all five months out of balance..I can't even see Jan to April now to reconcile it correctly, Please Please Advice.. I called quickbooks 6 hours later my who 5 mths of work was destroyed😢😢

[@HectorGarciaCPA]

Its too hard to determine how to fix without looking at it, if you book a couple of hours with an outside accountant/expert, maybe they can help you undo the reconciliations and re-do them

[@user-mh1io5mh3m]

I am looking for someone to assist with an issue I have with a clients banking transactions. They are entered into the register from bank feeds QBO, but does not show 'c' in the register. Can I clear in a batch? void/delete batch is not what I want to do.

[@HectorGarciaCPA]

You clear by putting a checkmark on them while Reconcile window

[@lucycarpio5282]

Puede estar esto en español por favor

[@HectorGarciaCPA]

No está agendado. La mayoría de contenido está en inglés

[@AzureenAziz]

I can't clear one of my duplicate transaction from 2022 bcs the transaction journal is Dr Bank RM50 Cr Bank RM50 when i reverse it, its basically the same, didnt change anything. It makes me mad since qb bank balance and actual bank balance do not match. I feel like the only option is to delete them. Not sure what happened to make it dr bank and cr bank again...

[@HectorGarciaCPA]

Not sure

[@AzureenAziz]

@@HectorGarciaCPA sorry i found out why. . there was a categorization issues. thanks for the reply

[@michelleb5939]

Would this be true for transactions showing cleared (C) but were never reconciled in the prior year?I don't want to mess up the py books.

[@HectorGarciaCPA]

If there do not have the R, they are not reconciled, they can be deleted

[@michelleb5939]

@@HectorGarciaCPA Thank you!

[@arteegirl]

HI Hector, I have an old journal entry from 2020 that is showing up in my bank reconciliation (checking account). How do I hide it without messing up the current books? I have quickbook desktop pro. Thanks.

[@HectorGarciaCPA]

You have to reconcile with another journal entry with opposite amounta

[@arteegirl]

@@HectorGarciaCPA Thanks. I'm trying to reconcile January 2022. Do I make that journal entry dated January 31, 2022 to remove the old journal entry from 2020?