2018 Reconciliation & Adjustments Needed to Balance
I have a new client that hasn't reconciled their credit card accounts since 2018. Since the last reconciliation, one of the transactions was deleted and I need to add it back to balance. It was a "transfer" and I can't tell from where. If I create a journal entry, what accounts to I credit/debit?
Taxes have already been paid so I don't want to change the numbers from 2018. I am assuming I might find more discrepancies. Should I create a gl account for adjustments so it can be identified in this years taxes?
Yes, you can make an Other Exp/Inc account called Prior Period Adjustments, or something along that line. I then usually point this out to the CPA, so they can decide where best to post something, and include with their YE AJE's.
Other exp/inc account, great idea! Thank you Casey!