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Manage Cash Flow in Quickbooks: Clearing Transactions Between Bank Statements

There are at least two ways for Business and Individuals  to keep track of up to date Cash Flow.

  • Manually enter Check, Debit Card, EFT, ACH, or Deposit data into the account:
    •  Open the Quickbooks Bank Ledger in one window, and the corresponding Bank Account online in another window – a two monitor system works great for this.
    •  Match the Bank Online new transactions (since the last bank statement) to those in the Quickbooks Bank Ledger.
    •  CLICK in the column located between the ‘Payment’ and ‘Deposit’ columns, until an ‘*’ (Asterisk) appears next to that transaction.  (The ‘Asterisk’ differentiates from previous Bank Statement reconciled data.)
    • At Bank Statement reconciliation, these items will already have a check in the ‘Reconciliation Screen’.
    • In most cases there will be a ‘Zero’ difference indicated at bottom right of the Reconciliation Screen.
    • CLICK ‘Reconcile Now’ and all the ‘*’ (Asterisk) will change to ‘√’ (Check-mark) in the Quickbooks ledger.
    • If the difference is not ‘Zero’, compare the Bank Statement transactions one by one with the Quickbooks ledger to find the missing transactions(s).
  • Another method is to download the transactions from the Bank on a regular basis.
    • ‘Download’ all the transactions since the last Bank Statement. (Or the last download for those who already use this method.)
    • There is no reason to hand enter data into Quickbooks; they will already appear in a ‘Downloaded Transactions’ window.
    • Allocate to the proper ‘Chart of Accounts’ account and save.
    • As the transactions are saved, they will appear in the Quickbooks Bank ledger with a ζ’ (Lightening Bolt), the symbol for allocated downloaded transactions.
    • If some transactions have previously been manually entered, these will appear as a ‘Matched Transaction’ in the ‘Downloaded Transactions’ window, simply verify the match and save.
    • When time to reconcile the next Bank Statement, all transactions will have been downloaded.
    • Match the Deposits, Checks, Debits, EFT,  and/or ACH transactions to arrive at ‘Zero’ difference.
    • CLICK ‘Reconcile Now and all the ζ’ (Lightening Bolt) will change to ‘√’ (Check-mark) in the Quickbooks ledger.

Either method will help provide up to date cash flow information for Business or Individual accounting.  The key is to update the data on a regular basis which will also save time in the long run.

What other questions do you have concerning Quickbooks? Contact Us, or schedule a brief call to chat.