Monday, May 24, 2010

Bank Reconciliation Problem


Subject:  Quicken Reconcile Question

Hi! Wondering if you can help?

Use QuickBooks for business, Quicken for Personal for many years.

Just entered the WRONG closing bal in a Quicken reconcile, and for the life of me, can't figure out how to fix it. Didn't like their 'fix' of adjusting the balance at end of month.

Have the latest Quicken 2010.

Any help appreciated.

Thanks in advance.



As I've explained several times, I haven't been using Quicken for several years, as I realized that QuickBooks is a far superior bookkeeping program for everyone's purpose, both personal and business.  In fact, you would probably find things a lot easier to deal with if you only used QB for both your personal and business accounting instead of trying to cope with two different programs.

However, I do recall that the reconciliation function in Quicken was set up the same as in QB; so there are a number of ways to fix the situation you have.

I'm assuming you finalized the previous reconcile, with an adjusting entry put into a discrepancy account.  If you didn't finalize the reconcile, you can just cancel it and start again with the correct bank balance.

In QB, when you pop up the reconcile window, there is a button that allows you to Undo Last Reconciliation.  If you have that, just undo the old one and do a new one with the correct balance.

Another option would be to do a new reconciliation as of the same date as the previous one, using the correct bank balance.  It should end up with an adjustment to the discrepancy account of the same amount in the opposite direction as your earlier adjusting entry.  Those should zero each other out and bring everything into sync with your bank balance.

Good luck.  I hope this helps.

Kerry Kerstetter



Hi, Kerry!

You are so kind ~ thanks so much!

Didn't know I could 'cancel' the reconcile.

Wish I would've read your note sooner, but I've been doing the personal on Quicken and businesses on QB Pro for many years now.

What I ended up doing was reload the previous backup, so I just lost a month of bookkeeping.

I don't what I can do to help you, but if you ever need a quick graphic (I was an award-winning designer for years), or a poodle skirt, please give me a holler!


My Final Word:

You didn't specify why you are using Quicken for your personal data.  If you are under the impression that you are stuck having to stay with Quicken, that isn't the case.  QuickBooks has the capability to import Quicken data so you can convert without losing any of your previously entered data.

You do need to be using a version of QB that is at least as current as the version of Quicken you have.  If you are currently using Quicken 2010, that means you can only import it into QB 2010 or 2011.

Good luck.

Kerry Kerstetter


Entering Classes


Subject: In Quickbooks, entering classes on the expense side

Saw your posting on the use of classes (via a Google search). We are new to Quickbooks, running a non-profit. We are attempting to use classes, and can easily see how to enter classes when entering income (deposits). However, we cannot figure out how to get to classes when we are entering expenses. We can't find anything that "gets" us to our list of classes on the expense side. Can you please help?

Thank you very much for your time.



There is a column with a drop-down list of classes in the windows for writing checks, entering bills, entering credit card charges and general journal entries.  However, unless you have selected "Use class tracking" in the Accounting Preferences setup, that list doesn't show up.

Which version of QB are you using?

Kerry Kerstetter



Thank you for your help. We were able to find the drop down menu, turn on classes, and can now enter classes on the expense side. Appreciate your help.



QB or Quicken?


Subject: Quicken or Quickbooks
I'm a realtor in San Francisco, ran across your blog. So with all your experience, which should I buy? I have a mac also. Thanks for your help.

I have a ton of info on QB and Quicken on my main website:

You can see that I definitely advise everyone to use QB.  However you need to coordinate whatever bookkeeping system you use with your professional tax advisor so you can keep everything in sync and make it easier to exchange data.

Good luck.  I hope this helps.

Kerry Kerstetter

Tracking Loans In QB


Subject: Accounts Receivable

I have searched high and low in QBs on establishing Accounts Receivable with Amortized Loans. I have printed Amortization Schedules and could record via monthly splits but surely QBs has such an animal and can be “memorized”. Surely, Uncle Sam will want his take based on Interest Income.



Actually, QB does not have a function that will automatically do the amortization between principal and interest for loans receivable.  They do have that feature, called the Loan Manager, for loans payable.  However, this is another of the many features in QB that I don't like or use.

It is much easier to just split the deposit entry into two lines yourself; one for the principal portion and one for the interest portion.  Use an estimated allocation if you are not positive what it is at the time of the payment and then go back later and correct it when you have coordinated your figures with the borrower's.

For various reasons, please do not set up any loans you make as Accounts Receivable for the type of account in QB. That type of account make things very messy.   I already have an Other Assets account set up for Loans Receivables, with sub-accounts for each loan.  Set up a new sub-account as the need arises.

Good luck.  I hope this helps.