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COMPUTER ACCOUNTING WITH

QUICKBOOKSLesson 4

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WORKING WITH BANK ACCOUNTS

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Using Bank Account Registers

When you work in QuickBooks, youoften use formssuch as a check or aninvoice to enter information. Butbehind the scenes, QuickBooks records

your entries in the appropriate accountregister. Each balance sheet accountlisted on the chart of accounts has aregister associated with it.

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Opening a Register

When you have a QuickBooks formdisplayed on your screen, you can view itsaccount register by choosing Use Registerfrom the Banking menu, or by double-clickingthe account name in the chart of accounts.

The register shows every transaction thataffects an accounts balance and lists them inchronological order (though you can changethe order by choosing a different option fromthe Sort by drop-down list).

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QuickBooks Check Register Shows

The columns in the register give specific information about the transaction.

On every transaction line, QuickBooks shows

the accounts running balance. The bottom of the

register window shows the accounts ending balance

the balance takes into account all the transactions

entered in the register

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Writing a QuickBooks check

QuickBooks displays the Write Checks window. The Bank Account field shows the account from

which you are writing this check.

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Writing a QuickBooks check

QuickBooks has an AutoRecall feature thatfills in the amount from the last transaction with a

payee. This is convenient when you have

recurring payments of the same amount.

You can turn on AutoRecall by choosing

Preferences from the Edit menu. Click General,

and then select the checkbox for Automatically

recall last transaction for this name on the My

Preferences tab.

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Writing a QuickBooks check

QuickBooks spells out the amount of thecheck for you on the line below the payee.

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Writing a QuickBooks check

Should NOT be used to pay:

Paychecks to employees

for wages and salaries

Payroll taxes and

liabilities Sales taxes

Bills already entered

using Enter Bi l lswindow

(Vendor section of theHome page)

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TRANSFERRING MONEY BETWEENACCOUNTS

You can easily transfer money to differentaccounts using the QuickBooks Transfer FundsBetween Accounts window.

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Reconcile Bank Statements To

Detect errors

Update accounting records

for unrecorded items

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When you keep your records with

QuickBooks, you dont have to worry about addition

or subtraction errors like you do when youre usinga paper check register. Even so, it is important to

get in the habit of reconciling your QuickBooks bank

accounts on a monthly basis. This helps you avoid

overdraft charges for bad checks, gives you a

chance to spot possible bank errors, and helps you

keep more accurate financial records.

An overview of reconciliation

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Reconcile

Bank statement balance

to

Companys accounting records

Reconciling is the process of making sure that

your account record matches the banks record.

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Differences

Differences between the bank statement andaccounting records are due to:

Errors Bank Errors or Company Errors

Timing differences

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TIMING DIFFERENCES

Bank has recorded an item, but the company hasnot

Unrecorded bank charges

Unrecorded interest earned

The company has recorded an item, but the bankhas not

Deposits in transit

Outstanding checks

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Bank Reconciliation Using QuickBooks

Record interest earned from bank statement Record bank service charges from bank

statement

Compare Bank statement with the Reconcile

Window Mark deposits

that have cleared

Mark checks thathave cleared

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Locating Specific Transactions

You can use the QuickBooks Find command tosearch for specific checks youve written.

To use the Find feature:

From the Edit menu, choose Find and then

select the Advanced tab.