QuickBooks Help: How to Clean Up Unreconciled Transactions from Previous Years (Part 1)

[@GentleFrog]

Is there a QuickBooks tutorial you'd like a video about? Let me know in the comments!

[@Jameenadams]

Great information especially for cleanup projects. Thanks so much Rachel!

[@GentleFrog]

You're welcome! I'm glad you like it.

[@berylmarsh7198]

Hi Rachel, Thanks for the video. Question: What's the difference in just making the adjustment to retained earnings instead of creating an expense on the current P&L?

[@GentleFrog]

I use the current P &L which will flow to retained earnings on 1/1 of the next year. I don't want to bury or hide things, I want them to be super clear to anyone looking. Ideally, I would be able to fix everything right but that's not always in the client's budget.

[@jennifersierra9529]

This is Great! Do you also use that other Expense prior year adjustments account for cleaning Ap and Ar items left un reconciled?

[@GentleFrog]

If the client is using AR and AP, I'd ask them first if those clients/vendors have outstanding values. AR and AP is very case-by-case, there's no one-size-fits-all answer.

[@sasha.elaine]

What if there’s multiple bank accounts in the chart of accounts?

[@GentleFrog]

Do the same thing for each bank account, creating a separate adjustment to the Prior Year Adjustment account for each one.