Do you balance your checkbook/reconcile your account?

[disneysteve]

Not in the newer quickbooks - no need to import anything. Just click a button and it all downloads.

So basically instead of entering all of your transactions in a written register, you enter them all in quickbooks and then the bank software matches up your transactions with the bank statement? Is that pretty much how it works?

As I said, I tried doing that in the past - using a computer registry (I think it was Quicken) instead of a paper registry but I found it took far more time than doing it on paper.

[HundredK]

So basically instead of entering all of your transactions in a written register, you enter them all in quickbooks and then the bank software matches up your transactions with the bank statement? Is that pretty much how it works?

As I said, I tried doing that in the past - using a computer registry (I think it was Quicken) instead of a paper registry but I found it took far more time than doing it on paper.

Yeah, that's sort of how it works. If I'm charging something to my debit or credit card, I don't even enter it manually, I just wait for the bank transaction to download and enter it at that time since it happens so fast (usually next day). And then the software can remember that you want things from a certain location categorized as groceries or whatever. If I'm writing a check or paying a bill with an electronic payment, I do manually enter it and then the software matches it up automatically when it downloads the data. I think it's a good double check. When I kept a paper register, there were times that I might forget to record an item and not find that out until the end of the month. Now I'm always reconciled within a day or two.

I used Quicken for a long time, and it's meant to pretty much be a check register with some budgeting and tax features. But it had some problems, mostly due to lack of resources and support from Intuit (the parent company). Quicken was also recently sold off, and they keep sending me emails saying they've made everything tons better, so I'll be curious to read reviews and see what improvements they have made.

I realized that I would prefer to think of our household as though we were a business anyway (because I somehow magically manage not to screw up our business with irresponsible decisions), so I switched to quickbooks online. It's also accessible from any computer or phone, pretty much from anywhere, which makes it super easy. I like it so much better, but it probably requires a bit more accounting knowledge to use than Quicken does.

[disneysteve]

If I'm charging something to my debit or credit card, I don't even enter it manually, I just wait for the bank transaction to download and enter it at that time since it happens so fast

Doesn't this defeat the purpose of keeping a register? The whole point of reconciling is to make sure that your records agree with the bank records. If you don't update your register until you see the bank record, aren't you opening up the possibility of missing a bank error?

[kork13]

I honestly don't even quite understand what you all mean weekend you say "reconcile your account" ... do you all write down every cent you spend & compare it to your account statement each month? That seems onerous & exorbitantly time consuming.

I watch my checking & credit card accounts every few days, and check to make sure that there isn't ever anything unexpected. On (rare) occasion I've found an erroneous transaction... Perhaps 3-4 in the last 10+ years.

But my accounts typically have 50-100 transactions in total each month, many of which are automated payments/transfers for savings, investments, utilities, credit cards, and so on. As long as I don't see anything abnormal, why would I go through the duplicative effort of recording all of those purchases, payments, transfers, etc?

[disneysteve]

I honestly don't even quite understand what you all mean when you say "reconcile your account"

Reconciling basically means making sure that the bank statement matches your records.

I record any transactions- deposits, withdrawals, bill payments. When the statement comes, I check that each was properly processed. Sometimes I find that I made a mistake (forgot to enter something or made a math error). Once in a while I find the bank made a mistake which I would never catch if I didn't reconcile. The whole process takes maybe 10 minutes once a month. It's certainly not onerous.

[HundredK]

Doesn't this defeat the purpose of keeping a register? The whole point of reconciling is to make sure that your records agree with the bank records. If you don't update your register until you see the bank record, aren't you opening up the possibility of missing a bank error?

No, it doesn't defeat it, because it also enters each transactions into categories and gives me data that I can slice and dice in many different ways, as well as an easy to access historical record of where things were at any given point. It also gets automatically entered into categories that can tell you exactly what you've spent, and lets you compare it to budgeted numbers.

Even in businesses, each transaction is recorded and a reconciliation is done at month end. It's an audit requirement. It not only proves your balance, but is your opportunity to make sure nothing was missed (like bank fees, or small electronic deposits that happen automatically that you don't know about until the statement comes out).

Mostly though, I like having the historical record and being able to analyze all that data quickly and easily in many different ways.

[disneysteve]

No, it doesn't defeat it

Sorry, I'm not following the process. You said you don't enter a transaction in your register until after you get the bank record of that transaction. Doesn't that mean that you are trusting that the bank's data is accurate? I think the point of reconciling is to make sure the bank's data is correct by checking it against your own data. Does that make sense? It's hard to put this into words.

[HundredK]

Sorry, I'm not following the process. You said you don't enter a transaction in your register until after you get the bank record of that transaction. Doesn't that mean that you are trusting that the bank's data is accurate? I think the point of reconciling is to make sure the bank's data is correct by checking it against your own data. Does that make sense? It's hard to put this into words.

Right - because it happens so quickly that I fully expect what amounts should be downloading within the next day, especially now that we don't spend so much money. So if there's an issue or something goes wonky, I will know and refer to the receipt to make sure it was right. Usually the unexpected things I find are something like a bank fee charged in error, which entering transactions wouldn't find anyway. Or like last week when I realized that amazon had started charging my card for a monthly subscription that I hadn't authorized. Those things stick out like a sore thumb when they're downloaded. My system is so streamlined that 99% of the time, all I do is click "accept" for each transaction (because quickbooks can recognize where the charge is from which budget line I want it coded to)

[disneysteve]

Right - because it happens so quickly that I fully expect what amounts should be downloading within the next day, especially now that we don't spend so much money. So if there's an issue or something goes wonky, I will know and refer to the receipt to make sure it was right.

Okay. That makes sense. So you're still cross-checking against receipts to make sure everything is done properly (when necessary).

I think the main problem is when people simply don't check and just assume the bank is always right, which simply isn't true.

[Petunia 100]

Not in the newer quickbooks - no need to import anything. Just click a button and it all downloads.

I have QuickBooks 2016. Which button do you click?

[HundredK]

I have QuickBooks 2016. Which button do you click?

I use quickbooks online, but I believe this still works in the desktop version. Just go to banking, click to add a new account, and then it can automatically connect to your account and auto-download.

This might provide some guidance for the desktop version: https://community.intuit.com/article...kbooks-desktop

[Petunia 100]

So basically instead of entering all of your transactions in a written register, you enter them all in quickbooks and then the bank software matches up your transactions with the bank statement? Is that pretty much how it works?

As I said, I tried doing that in the past - using a computer registry (I think it was Quicken) instead of a paper registry but I found it took far more time than doing it on paper.

It matches up the transactions, and enters those you don't have.

Once a transaction is entered by Quickbooks or matched by Quickbooks, there is a squiggly line in the "cleared" column. Once you actually reconcile, there is a check mark in the "cleared" column.

I don't use QuickBooks for my own bank account. I work in a small CPA firm, and many of our clients are small businesses who use QuickBooks. I work on one in particular who NEVER enters any deposits, debit card transactions or automatic payments, and will even occasionally do hand-written checks and not enter those either. Since it is a business with dozens of transactions per day, I find the import feature quite handy.

[Petunia 100]

I use quickbooks online, but I believe this still works in the desktop version. Just go to banking, click to add a new account, and then it can automatically connect to your account and auto-download.

This might provide some guidance for the desktop version: https://community.intuit.com/article...kbooks-desktop

Oh yes, I remember that. You have to sign up for Direct Connect which involves a fee with this particular client's bank. I predict that is not in my future.

Thank you for the tip.

[LivingAlmostLarge]

Not really. Haven't done it in years. I do have a pretty good buffer though.

[disneysteve]

Not really. Haven't done it in years. I do have a pretty good buffer though.

Having the buffer certainly makes up for the effect of errors but doesn't stop them from happening.