Banking and Reconciliation Flashcards

A client's bank feed shows a transaction downloaded twice due to a sync error. What is the correct way to handle this in QBO?

Answer: Exclude the duplicate transaction

In QBO, duplicate downloaded transactions should be excluded so they do not post to the books.

When reconciling in QBO, what does the 'Finish Later' option do?

Answer: Saves the reconciliation progress without finalizing it

'Finish Later' saves your in-progress reconciliation so you can return to it without losing cleared marks.

A deposit recorded in QBO on 7/31 does not appear on the July bank statement. How should this be handled during reconciliation?

Answer: Leave it unchecked — it is an outstanding deposit

An outstanding deposit is simply left unchecked during reconciliation; it will appear on the next statement.

Which QBO report shows all transactions that have been cleared versus those still outstanding for a bank account?

Answer: Reconciliation Report

The Reconciliation Report in QBO lists cleared and outstanding transactions for a reconciled period.

A bank service charge appears on the statement but was not entered in QBO. Where can you add it during reconciliation?

Answer: Directly in the reconciliation screen under Service Charge field

QBO's reconciliation screen has a Service Charge field where you can enter charges and assign an expense account on the spot.

What happens to the opening balance in QBO when you start reconciling an account for the very first time?

Answer: QBO creates an Opening Balance Equity transaction automatically

QBO creates an Opening Balance Equity journal entry to set the starting balance when you first reconcile an account.

A client wants to connect their bank account to QBO via bank feeds. Which connection method provides the most real-time data with the fewest errors?

Answer: Direct Connect (bank-hosted connection)

Direct Connect uses a bank-hosted connection, providing the most reliable and real-time transaction feed.