Bank Reconciliation

Question

I've taken over the books now, our previous book keeper didn't keep Bank Recs up to date. I'm now struggling to to get caught up, I have found numerous issues from the pervious fiscal year. I cannot make changes example NSF cheques. Do I just skip the reconciliation and start in the new year? Beyond frustrated!! These have not been done since May 2019

Richard S. Ridings · Answer

If your year end tax return for last year has not been submitted to the CRA then you can go ahead as normal and do the bank recs. However, if you/your accountant has already sent in the return, then discuss some of the issues with your accountant. 
 The only time I have had this happen with a client, I was told by the accountant not to make any changes in the previous year and make them all in the current year, then reconcile. This takes some time and effort (especially if it's more than a couple of months) but it is possible and does work. Let us know if you need to do this. 
 Wlove said: I cannot make changes example NSF cheques 
 What kind of changes are you referring to? 
 Wlove said: Do I just skip the reconciliation and start in the new year? 
 You can't just skip doing bank recs. You would do the bank recs manually, post the adjustments, then reset the bank rec module and start it over after you have a complete and valid manual bank rec. That's more work than what I am suggesting above.

Sage 50 Canada

Bank Reconciliation

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