How far back can you go to reconcile a bank account up-to-date? I am working as a bookkeeper for a friend and he uses QB online, his books have not been reconciled since 6/07. Since the year is over is it to late?

Let me brief about please aging method

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Originally Posted by gulrukh

let me brief about please aging method

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I don't understand what you are asking me. Can you please explain yourself?

There is nothing in QuickBooks that will prevent you from performing the reconciliations starting in June of 2007. The only problem would be if there are material issues found during the reconciliation you may have to amend you 2007 tax return.

What do you mean by materials things?

Can I just start with 2008?

You can start with 2008 but mostlikely there will be a large adjustment that will have to be made to reconcile the account. This adjustment will show up in the income statement as a Reconciliation Descrepancy. Material means large. For example a 25¢ descreipancy might be immaterial but a descrepancy of $25,000 would be a material amount. A descrepancy of $25,000 would have to be resolved and not ignored. That is what I mean by material.

So the best thing for me to do is to print out an income statement from 2007, do all of the bank reconciliations to current date and see if there are any materials. If so, how do I resolved the materials? And depending on the amount, I should notify his CPA for amendment?