I am really lost help!!!!
Suggestion:
This situation is extremely common. How the transactions should be entered is typically a question of time and effort.
If you have the time and are up for the effort, then by far, the best way is to enter transactions as close to Quickbooks standard as possible. This method creates a viable history trail which appears correct and continuous when displayed with future entries. If you can enter deposits as Deposits and checks/credits as Checks then that is the best method.
However, if you are pressed for time or this assignment is not worth a great deal of effort (ex. one-time contract, only needing a financial) then entering a month's transactions by journal entry is the way to go.
Good luck!
Karl Sexton
Accounting On-Call LLC
Accounting | Quickbooks | Tax | Bookkeeping
Lutz/North Tampa FL
(813) 641-4262
www.accountingoncall.com
{ 2 comments… read them below or add one }
the point of reconciliation is to validate that you haven't missed any transactions and that the bank statement accurately reflects your account details.
Without other records there is nothing to reconcile against.
–In accounting, reconciliation refers to a process that compares two sets of records (usually the balances of two accounts) to make sure they are in agreement. Reconciliation is used to ensure that the money leaving an account matches the actual money spent, this is done by making sure the balances match at the end of a particular accounting period.
I would enter each transaction as shown on the bank statement in the checking account. Items you can't identify should be temporarily classified to Suspense… an account you create. The suspense account then serves as a repository of all the classification issues that you need to resolve with your basket case, I mean client
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