How do you perform a bank reconciliation when there are outstanding checks issued that have not yet been cashed by the vendor that we paid?

Hi, Kogawa. Outstanding checks, which are payments issued to vendors that haven’t yet been cashed or cleared, will naturally remain open during the reconciliation process until the bank processes them.

Here’s what you can do during the reconciliation process:

1. Start your bank reconciliation process as usual. Compare each transaction in QuickBooks to your bank statement.
2. For any checks you’ve issued that appear in QuickBooks but not on your bank statement (because they haven’t cleared yet), leave those transactions unchecked in the reconciliation window.
3. This ensures these checks remain recorded as pending transactions, and QuickBooks will automatically carry them over to your next reconciliation.
4. Once the vendor cashes the check and it clears the bank (appearing on your future bank statement), you can mark them as cleared during your next reconciliation.

By following these steps, your books will remain accurate, and outstanding checks will be handled correctly.

If you have any questions along the way or need further assistance, please don’t hesitate to reach out.