In setting up my new QuickBooks file, how do I enter the existing bank account balance with outstanding uncleared checks

It really depends upon how they were reported in previous year’s Financial Statement Report.

Let’s take examples and assume the ending bank balance per the bank statement is $11,000. There is also one check you wrote for $10,000 has not cleared the bank yet. In your books, the actual bank balance should be $1,000, right?

Example #1: You have already reported $10,000 as an expense in the previous year’s financial statement.

Since you have already reported, you do not want to expense it again in the current year. You would post $10,000 check as “Prior year” activity, with a prior date. This way, you can put the bank statement’s ending balance and have the uncleared check as outstanding, for the purpose of bank reconciliation.

example1_1

example1_2

example1_3

example1_4

Example #2: You have not reported $10,000 as an expense in the previous year’s financial statement.

This becomes your current year financial activity when the check has cashed the bank. If you are downloading banking transactions, you would expense it when the bank posted the transaction. In setting up QuickBooks file, the bank balance is $11,000, the same as the bank statement balance.

example2_1

example2_2

example2_3

example2_4


If you found our answers useful then please contribute few bucks to support this forum. Thank you!





Thank you!







2015 Laser 1099-MISC Income, Federal Copy A, Bulk

2015 Laser 1099-MISC Income, Federal Copy A, Bulk

Sign up QuickBooks for a 30-day FREE Trial

QuickBooks USA





QuickBooks Canada