How to Reconcile The Loan Bank Account

How to Reconcile The Loan Bank Account

I have set it up so all the loans come out of one bank account. It makes it easier to reconcile. Also this account does not need to be reconciled as often as the rent account. Which should be reconciled every month to make sure the Tenant customer accounts are accurate.

The principle and interest change every single month for every loan account. If you wanted to be completely accurate you would have to go in and change the amount of principle and interest for each loan every single month. This is a lot of work. If you do not it makes your profit and loss statement slightly inaccurate but in is an insignificant amount. We do a correction at the end of the year to make the principle and interest completely accurate for the taxes. You can also do the correction quarterly or semi annually before you do the P&L. The directions for the correction is under a different instruction sheet called Loan Interest Adjustment.

We put the principle and interest amount of the month we are changing and memorize it for

  1. Get Bank Statement for the month you are reconciling
  2. Get Loan Statements for the month you are reconciling. If you can’t find the Loan Statements you can look then up online.
    1. Benchmark
    2. Columbus First
  3. Click Banking
  4. Click Reconcile
  5. Select the correct checking account (Columbus First)
  6. Check that the begining balance in QB matches the begining balance on the bank statement
  7. Type in the ending balance
  8. Click Continue
  9. Click top right corner to make the screen bigger
  10. Double click the amount to sort the numbers in order from smallest to highest
  11. Check Hide Transactions After the Statement’s End
  12. Go through the bank statement and check off all the amounts that match QB
  13. After you are finished, highlight all the amounts on the bank statement that are not checked off.
  14. Check the previous statement and see which ones are already memorized. Put an M in front of the amount.
  15. Go to the memorized transaction list
  16. Double click the amount column to sort the memorized transactions in ascending order.
  17. Find the first one that is memorized.
  18. Double click on the loan amount to open it up.
  19. Change the date to match the statement. You can put it one day different to make it easier to find later.
  20. Click Save and Close
  21. Put a dot on the bank statement next one till all transactions are entered.
  22. X out the memorized transaction screen and go back to the reconciliation screen. You will see all the duplicates of the transactions you just entered. They have the same address as the other ones and they are white. This is where you will see the different date.
  23. Click the correct one to reconcile it and put a check on the bank statement.
  24. Double click the wrong one to open it up.
  25. Go to the top left and click edit, then right click to bring up the menu then click delete check
  26. It will ask “Are you sure you want to delete this check” Click OK
  27. You will then be on a screen with a different unrelated check. (It is the next one in sequence) X that check out to go back to the reconciliation screen.
  28. Make sure it has been reconciled and check off on the computer and the bank statement.
  30. There will be a few transactions left that need to be changed that are not memorized. Circle them with the highlighter.
  31. Then double click them to open up the check.
  32. Search the loan statement for the matching transaction with the wrong amount. The Loan statements are in numerical order by loan number. If you do not have the bank statement you can login to online banking and get the principle and interest and total amount.
  33. Change total amount and principle and Interest
  34. Memorize
  35. Add to group. Group name = Benchmark Loans or Columbus First Loans.& Click OK
  36. Save and Close
  37. It asks you if you want to record your changes, Click Yes
  38. On the top left bar click Lists
  39. Click Memorized Transaction List
  40. There should be two memorized transactions with different amounts
  41. Find the one with the old amount
  42. Right click the mouse and click Delete Memorized Transaction.
  43. Minimize or x out of memorized transaction list.
  44. You are now back on the reconcile screen.
  45. After all transactions are checked and the difference is Zero click reconcille now and you are done for that month. Yeah!