QuickBooks Reconciliation error occurs when bank statement does not match with bank transactions. There should be a zero balance between them. However, if this is not the case and you become unable to match the difference. Then, make sure to read the whole guide. You will get to know the updated methods to fix reconciliation discrepancies in QuickBooks Desktop and Online.
A Quick Overview of QuickBooks Reconciliation Error
The error depicts that the balance between the bank statement and transaction is not zero.
If you are dealing with the same issue then just rely on us. The situation could occur when you have not applied the correct way. Therefore, must learn and go through the correct procedure. This guide contains the same. However, if you want to know more causes behind the issue then make sure to navigate below.
Causes that lead to QuickBooks Reconciliation Error
Not only just applying a wrong way to reconciliation can lead to the issue. But, many more. You can jump on the pointers below to know them.
- Bank statements and transactions have the wrong information.
- You may specify the wrong balance in the beginning.
- The same transaction is added twice.
- Reconcile the deleted transactions.
- Missing transactions.
- Adding the transactions which have not been cleared by the bank.
Points to Remember before Fixing the Reconciliation
The user needs to undertake all these pointers before resolving the reconciliation error in the QuickBooks desktop.
- Rebuild the starting balance as zero if you find the wrong balance.
- Also, build a backup of the file to deal with any kind of interruption.
How can I Fix Reconciliation in QuickBooks Online?
The procedure contains 7 steps to resolve the reconciliation issue in QuickBooks online. First, we try to review the beginning and opening balances. Thereafter, move ahead with the right step-by-step guide. So, let’s get started and follow these quick and simple steps.
1. Review the Opening Balance
The user is first required to find out the reconciliation differences within QuickBooks Online. So, make sure that the balance and opening are correct. Once examining this thing, try to examine the ending balance.
2. Examine the Ending Balance
Account reconciliation is started by adding the balance recorded on the bank statement. Hence, ensure that you have mentioned the accurate amount. Take assistance from the steps below to do so.
- Make sure to access the Reconciliation window.
- Thereafter, you need to tap the Edit Info button.
- Check the Ending balance along with the Ending date.
- Don’t forget to review the bank statement too.
- If any prompts appear then make sure to do some changes.
- Hit the Save button to save all these recent changes.
If the difference still does not appear ‘zero’ then head towards the next step and try to combine other transactions in one.
3. Combine Multiple Transactions in One
If the bank adds several transactions in one place then do the same on your QuickBooks accounts too. At times, users add the transactions separately which leads to the issue. Therefore, try to add all those individual payments and transactions to the Undeposited Funds account. Then, involve them in just one platform.
The discrepancies should not be there after completing this step. However, if this is not the case then head towards the fourth step.
4. Remove the Correct Transactions
Now, the user is required to remove the correct payments as it will provide a result of faulty transactions. It would be recommended to do it on your own. Make sure that you have the bank statement to match the transactions already included in the QB account.
It would be recommended to go through the causes behind it so that the difference appears as zero.
5. Add the Payments not Included in QuickBooks
Afterward, you need to include those transactions in the account which is not included in Quickbooks. It will provide a one-stop place for all the payments. You also need to go through the downloaded transaction when adding online banking to your account.
Once done, navigate towards the Reconciliation window and try to verify the transaction list. Go through the steps below if the transaction of the bank statement is not included in the QB software.
- First of all, you need to access QuickBooks.
- Then, make sure to choose the Expenses or Sales button.
- Try to locate the transaction that is not included in the QuickBooks account but on the bank statement.
- If the transaction appears then tap Open.
- Consequently, examine the Deposits and Payments of your account.
- Transactions should be included in the appropriate account.
- Now, go through the QuickBooks and add lost transactions.
- Add bank statements as sales receipts and new expenses if they are not in the QuickBooks account.
6. Remove the Transactions not included on the Bank Statement
This step requires removing all the transactions that are not included in the bank statement. Open the Reconciliation window and go through the transaction carefully. If you find any transactions that are not on the bank statement. Then, head towards the steps below.
- To initiate, go to the transaction and examine the mentioned date.
- Do the same for bank statements as well.
- Thereafter, you need to specify the date and amount of the transaction.
- Once done, run a report of the specific time.
- Finally, just run your past reconciliation report.
You need to go through any of the below procedures according to your condition right now.
What to Do if Transaction was on the Past Reconciliation Report?
Consider these helpful tips if the copied transactions are present on the past reconciliation report for specific dates but not in the bank statement.
- Head towards the Sales or Expenses menu.
- Once done, go through the list of customers, amount, supplier, and date.
- Remove all the transactions that you included twice.
- Consequently, tap the Accounting menu.
- Choose the Chart of Accounts button.
- Save the reconciling account.
- After that, select Account History.
- Once done, expand and open the transaction.
- Hit the Delete button.
- If asked about the confirmation then choose the Yes button.
What to do if the Transaction was not on the Past Reconciliation Report?
Here is what you need to consider when the transaction was not added to the past reconciliation report.
- To begin with, hit the Accounting button.
- Select the Chart of Accounts button.
- Make sure to save the reconciling account.
- After that, you need to tap on the button named Account history.
- Try to find out the transaction and expand it.
- The transaction would be accurate if the box is neither ticked nor C.
- Additionally, add a checkmark if you see R on the specific column.
- In the end, just hit the Save tab.
7. Verify the Transactions that are not Right
If still some slight difference appears then make sure to get in touch with your accountant. You don’t require to do some changes to the invoices of your customers. Just get down the steps below if the bank has not added fees while including it in QuickBooks.
- Firstly, navigate towards the + button.
- Once done, choose Bank Deposit.
- Make sure to include a bank or processing fee in your account.
- Enter the appropriate note under the Memo option.
Your account gets reconciled after performing this 7 step procedure. Now, let’s get into and learn how you can fix reconciliation discrepancies in the QuickBooks desktop.
How to Fix QuickBooks Reconciliation Error in QuickBooks Desktop?
Now, if you have a QuickBooks desktop and dealing with this issue then act as suggested below. Well, you may end up with a different balance due to many reasons. Get into the steps below to learn the whole idea.
1. Verify the Opening Balance
The user is first required to verify the beginning balance in the QB desktop. After a successful reconciliation, try to run the reports that have changed, deleted, and added transactions. Hence, just run the Transaction Detail report, Missing Check report, and Reconciliation Discrepancy Report from the steps provided below.
Missing Check Report
This report will enable you to go through the reconciliation to see the closing balance.
- Click on the Report menu.
- Now, place your cursor on the Banking tab.
- After that, choose the Missing Checks option.
- Select the account that you want to reconcile.
- Finally, just hit the OK button.
Reconciliation Discrepancy Report
A reconciliation discrepancy report will help to see the recent changes. You can sort them out as per the date. Get into the steps below to run this report.
- Tap the Reports menu.
- Then, bring the cursor towards the Banking.
- Make sure to choose the Reconciliation Discrepancy tab.
- Tap on the account which you want to reconcile.
- Thereafter, hit OK.
- After that, try to examine the report and find out the discrepancies.
If you find some changes then ask for the reason from the person who did it.
Transaction Detail Report
The steps below will help to run the transaction detail report. This will get you into the changed transactions.
- Initially, hit the Report menu.
- Move towards the Custom Reports button.
- Thereafter, tap the Display button.
- Once done, head towards the Date Form and specify the recent date.
- Now, put the last reconciliation date on the Date to the field.
- Hover the mouse towards the Filters option.
- Go to the Account field and choose the appropriate account.
- After that, just switch to the Entered/Last-Modified field.
- From the Date From tab, choose the date of the last reconciliation.
- Choose Date to for specifying today’s date.
- Click OK and run this report.
2. Examine the Reconciliation Adjustments
At times, reconciliation adjustments are made to obtain an equal record with the bank. So, if there is any insufficient adjustment then make sure to remove it from the steps provided below.
- Tap the Lists button.
- Thereafter, you need to select Chart of Accounts.
- Once done, just access the Reconciliation Discrepancies.
- Head towards the Dates and enter the date for the last reconciliations.
Make sure to talk with the person who has brought inaccurate adjustments to the bank records. So that you can find the reason behind it.
Frequently Asked Questions (FAQs)
1. How can I find the reconciliation discrepancies in QuickBooks Online?
You only need to compare the bank transaction and bank statement to examine the reconciliation discrepancies in QuickBooks online. If the difference is zero then there would be no problem. But, if not then try to fix the discrepancies.
2. How does the reconcile discrepancy occur?
- Modification of Original data.
- Reconciliation adjustments
- Required data gets deleted
- Added data twice
3. Do I need to consider some other points too before fixing the QuickBooks reconciliation discrepancy?
- Make sure to create a backup of the file.
- Create and start the reconciliation
- Examine the Opening balance
4. What is the procedure to resolve transactions in my bank account before the QuickBooks reconciliation error?
- Hit the Banking menu firstly.
- Thereafter, choose Reconcile button.
- Make sure to tap the bank account that you want to reconcile.
- Head towards the “off-cycle reconciliation” and mention the date.
- Go to the Ending Balance window and enter the balance of the successful reconciliation.
- Go further by clicking on the Continue option.
- Verify the transactions that you want to fix from the Reconcile window.
- Also, examine that the difference should be $0.00
- At last, just hit the Reconcile now tab.
5. How to make the payment check while resolving QuickBooks Reconciliation Discrepancy?
- Firstly, just tap the Reconcile now.
- Hit the Create bill to pay later when QuickBooks prompts with.
- Print the report for the records reconciliation if you wish.
- Now, the bill will appear.
- Make sure that the reconciled amount is shown as the balance.
- Thereafter, hit the Clear tab.
- All other information will be cleared now.
- Just close the bill.