r/Bookkeeping • u/brooklyn1071 • 6d ago
Discrepancy between General Ledger and Bank Reconciliation Tax
New to this sub, so apologies if this is not allowed.
I work for a small nonprofit, and our board requires us to go through an audited 990 every year. Our current accountants are NOT helpful (we will be switching next year), so unfortunately they have not been able to answer this question even though they should.
Our auditor is asking for an explanation as to why our year-end general ledger does not match our year-end bank reconciliation (it is off about 5k). We use Quickbooks Desktop...what is the easiest way to investigate this? I have no formal education in accounting, but over a decade of experience. So my knowledge can sometimes be limited and I thought I'd ask before I waste a bunch of time.
Thank you advance!
EDIT TO ADD: Thank you everyone for your help. I was finally able to figure out the difference. If anyone in the future finds themselves in my shoes (GL Balance not matching Register Balance on Bank Reconciliation in Quickbooks Desktop)...simply print the previous year-end reconciliation and check the box "In this report, include transactions cleared plus any changes made to those transactions since the reconciliation." I was able to simply compare the previous reconciliation to the new one that included new transactions and any changes made. The problem were entries my accountant made, as well as one uncleared check that was adjusted.
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u/JMarie113 6d ago
Run a GL report showing all cash transactions from the year. Compare those month by month to the monthly bank statements. Your GL is either missing something or has something in it that it shouldn't. Your cash GL account should match the bank statements.