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In bank reconciliations there are 4 overdue payables from months back and this is the amount not letting it balance. How do I reconcile these? These were done by previous bookkeeper.
Hi Barry. If those transactions are unchecked and your difference shows as zero then they are duplicates - or at least the entry to the bank was completed using either one or a number of transactions which would have been marked with a checkmark on previous reconciliations, meaning that you didn't need to check-mark these ones to reconcile at the time. I would try to find those entries to make sure that the expense was recorded properly, and if it was, then I would reverse these 4 transactions that have been hanging on, and then reverse the Payable Charges associated with them as well. That would be the perfect way to fix them as it would correct your Income and Expense statement and your GST returns as well.
That said, if these entries are very old (even if they were in the previous fiscal year and the taxes have already been done) I'd chat with my accountant and depending on how large the entries were, maybe just make an adjustment to the bank to offset those entries - essentially, the adjustment you make to the bank would show in this screen along with the 4 that have been hanging around and you could put check-marks on all 5 transactions and keep that difference of $0.00 so that you can record the reconciliation and get all of those items out of this screen. The reason I'd talk with the accountant is for help determining how "material" those items are. If at some point you were undergoing an audit and they determined that you have over-claimed on GST by accident or overstated expenses, there would be penalties and doing the extra investigation to look for duplicates and having a chat with your accountant can either eliminate that risk for you or at least allow you to make a decision that acknowledges that risk.
Once you've made an informed choice about how you want to proceed, our team can help you enter the adjustment if necessary or reverse those entries if that's the route you want to go. Just give us a call at 1-800-667-7893.