Banking and Reconciliation Flashcards

During reconciliation you notice the difference is exactly $25 — the same amount as a check written this period. What likely caused this?

Answer: The check was not cleared on the bank statement

An unreconciled check with the exact difference amount usually means it has not yet cleared the bank.

Which account type in QBO supports bank feed connections?

Answer: Bank or Credit Card accounts

QBO bank feeds are supported for Bank and Credit Card account types only.

A client accidentally reconciled a transaction that should not have been cleared. How do you fix this without undoing the entire reconciliation?

Answer: Edit the transaction and uncheck the reconciled status (R) in the register

You can open the register, find the transaction, and change its status from R (reconciled) to C (cleared) or blank.

What does the 'Match' action in QBO's For Review tab do?

Answer: Links the downloaded bank transaction to an existing QBO transaction

Match links a downloaded bank transaction to an already-existing QBO transaction so it is not duplicated.

A reconciliation is off by a small amount that cannot be found. A ProAdvisor decides to force the reconciliation to zero. Which account is typically used for this adjustment?

Answer: Reconciliation Discrepancies

QBO posts forced reconciliation adjustments to the Reconciliation Discrepancies account.

When reviewing bank feed transactions, a client sees a payroll direct deposit. What is the recommended QBO workflow?

Answer: Match it to a payroll journal entry previously recorded

Best practice is to record payroll via a journal entry first, then match the bank feed transaction to it.

A bank statement ending balance is $10,000. QBO's register shows $9,800. What is the most common next step?

Answer: Identify uncleared or missing transactions totaling $200

A $200 difference means you need to find uncleared transactions or missing entries that account for the gap.