Reconciliation is when the transactions entered by the user are matched with your bank or credit card report of the company, but QuickBooks Reconciliation Problems come with the process and are reported many times. You must reconcile regularly to verify accuracy in the accounting records. Additionally, the reconciliation in QuickBooks helps to check for the following
- All the transactions involving payments, deposits, and bank fees appear in QuickBooks.
- All the transactions made in the QuickBooks application bank register, including the ending balance, match the actual bank account to avoid Bank Reconciliation problems.
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Key Points to remember before you do the Bank Reconciliation process
- Make a Backup of your QuickBooks Company File.
- The bank or credit card account in QuickBooks must have the correct beginning balance as you go for the Bank Reconciliation process.
- You must have entered all uncleared transactions for that statement period.
- Check if you have got a copy of your bank or credit card statement.
Steps to carry out Bank Reconciliation Process
Follow the steps given below to carry out the Reconciliation Process and keep your bank statement handy to solve the Bank Reconciliation problems.
- Click the Gear icon and select Reconcile.
- Select the account that you plan to reconcile from the drop-down menu.
- Enter the Ending Balance and Ending Date of your bank statement.
Note: If the reconciliation process was done earlier for the account, look at the last statement ending date and ensure that the reconciliation is carried out for the following month’s statement.
- Click on Start Reconciling.
- The transactions in QuickBooks for a specific period appear on the Reconcile page.
- Cross-check from the bank statement tick off the transactions in the QuickBooks that you see on the statement.
- If the process completes without QuickBooks Reconciliation Problems, the Difference amount should come to ‘0‘.
Causes of QuickBooks Reconciliation Problems/Discrepancies
You can notice reconciliation discrepancies when the Difference amount does not come to ‘0‘, and this may be a result of the following reasons:
- Changing the transaction date, deleting or voiding a previously reconciled transaction (like a check or a bill).
- Changing the source account of a previously reconciled transaction.
Solutions to Fix Discrepancies While Reconciling Bank Account
Modified, deleted, or added transaction
There are a number of reports available in QuickBooks that will help you identify the discrepancies and consequently solve the Bank Reconciliation problems.
Reconciliation Discrepancy Report: This report displays the transactions sorted by statement date that were changed since the process of last reconciliation.
- From the Reports menu, select Banking and then Reconciliation Discrepancy.
- Choose the appropriate account, then select OK.
- Review the report to identify any discrepancies.
Missing Checks Report: This report verifies the missing transactions.
- From the Reports menu, select Banking and then click on Missing Checks.
- Choose the appropriate account, then select OK.
- Review the report for transactions that don’t match your bank statement.
A previous Forced Reconciliation, which might have resulted in a reconciliation adjustment, may also cause the QuickBooks Reconciliation Problems. Consequently, you need to review the Reconciliation Discrepancy account for any inappropriate adjustments.
- Go to the Lists menu select Chart of Accounts.
- Double-click the Reconciliation Discrepancies account.
- From the Dates drop-down, select the appropriate filter.
Fix the beginning balance alert
This alert appears when:
- A transaction’s amount or date requires some changes.
- A previous transaction is unreconciled.
- There was an error in the previous transaction reconciliation.
- A deleted transaction caused the error.
To update the transactions to fix the error, follow the steps given below:
- Select the Beginning Balance Discrepancy alert link and open the Discrepancy Report.
- Locate the transactions that the report has identified.
Based on the change type for each transaction listed in the report, fix the transaction as stated below:
- Needs to be edited: Make the necessary changes to the account or amount information.
- Unreconciled: Change the status to reconciled (R) in the status (checkmark) column.
- Reconciled in error: Change the reconciliation status back to cleared (C) or no status.
- Deleted: Recreate the deleted transaction, locate it in the View Register, select the status (checkmark) column until it is marked reconciled (R), then re-open the Reconcile page. If there is still a discrepancy alert, select the link and verify that the deleted transaction remains in the report but that the difference changed to reflect the amount of the recreated, reconciled transaction.
- Save the changes you made to any of the transactions as stated above. The transaction disappears from the discrepancy report with every fix, and the discrepancy difference gets closer to $0.00.
- Fix additional transactions until the difference equals $0.00. When it gets to $0.00, your beginning balance in QuickBooks Online will now match your bank statement.
- Select Resume Reconciling.
Mismatched number of transactions
On the Reconcile page, compare the total number of transactions on the list to match the number of transactions listed on your bank statement. To make the comparison follow the steps given below:
- Select the button for a Transaction Type on the Reconcile page. For bank accounts, the transaction types buttons appear as Payments and Deposits. For credit card accounts, the buttons show as Charges and Payments.
- In the end, compare each to that on your statement.
Note: If the statement total number comes out to be more, see the transactions that aren’t selected in QuickBooks Online.
If the statement total number is less than the number in QuickBooks Online, this indicates too many selected transactions.
It is always feasible to get to the solution once you figure out the root cause of the error. If the error and cause of the reconciliation problem you are encountering are not listed, contact Accounting Support at +1- 855 738 2784 and get a quick solution to your QuickBooks Reconciliation Problems.