Table of Content:-
- What are QuickBooks Bank Reconciliation Problems
- Causes of Reconciliation Problems in QuickBooks
- Steps to Resolve/fix the Issue of QuickBooks Bank Reconciliation
QuickBooks Online and Desktop are great for integrating with third-party banking applications and services. If you have integrated QuickBooks (QB) with your online banking, you must reconcile accounts to ensure your banking information is accurate.
It is common for QuickBooks Bank Reconciliation problems to appear at some point in the process. To ensure the accuracy of the accounting records, the reconciliation process must be performed regularly.
You will understand the primary reasons that can cause QuickBooks Bank reconciliation problems and quick methods to solve them. Read the article for more information.
What are QuickBooks Bank Reconciliation Problems
Businesses need to reconcile their bank accounts monthly to avoid any inaccuracies. The regular QuickBooks reconciliation of bank accounts assures the users about the following points:
- The problem can be rectified through this process. Plus, the users can analyze discrepancies between records and banks.
- It is also beneficial to have timely notification of any fraudulent transactions that may occur.
It is suggested that the users should reconcile the bank/credit card accounts within QuickBooks regularly to ensure that the results are accurate.
Causes of Reconciliation Problems in QuickBooks
Here we have listed some of the most common reasons that can cause QuickBooks reconciliation problems:
- Missing checks are present in QuickBooks or not.
- Incorrect adjustments in QuickBooks.
- Mistakes while making an entry in QuickBooks.
- Missed transaction entries in the QuickBooks transactions database.
Steps To Resolve/Fix the Issue of QuickBooks Bank Reconciliation
When the transactions you entered into QuickBooks do not match the transactions on your bank statement. Follow the instructions below to resolve the QuickBooks Bank reconciliation issues.
Step 1: Review your Opening and Beginning Balances
To begin, double-check the opening and beginning balances. After you’ve confirmed that these are correct, you can look for other problems.
Step 2: Changed, Deleted, or New Transactions
Several QuickBooks reports let you know if anything has been changed, deleted, or added. Hence to check the reports follow the steps provided below.
Firstly, Run a Reconciliation Discrepancy Report
The report confirms new changes that have occurred since your last reconciliation. It is arranged by statement date.
Follow the instructions below:
- Select “Reports” from the drop-down menu. From the Banking menu, select “Reconciliation Discrepancy.”
- Choose the account you’re reconciling now, and then press OK.
- Analyze the report and look for any discrepancies.
- Consult the individual who made the adjustments. Once you’ve found the reason, make the changes to the transaction.
Secondly, Run the Missing Check Reports
You will be able to see whether any checks are missing, once you run a missing check report. A missing check report may give you information about the closing balance of your reconciliation.
The steps are as follows:
- Go to the “Reports” menu first. Select “Banking” from the drop-down menu, then “Missing Checks”.
- Choose the account you want to reconcile and then click OK.
- Examine the report. Look for any transactions that have been included in the report but don’t exist on your bank statement. Remember that they shouldn’t be on your reconciliation if they aren’t on your bank statement.
Thirdly, Run the Transaction Detail Report
Please use the following statements to determine if any transactions have been changed:
- It is suggested that you start with the Reports section. Select “Transaction Detail” from the “Custom Reports” menu.
- Choose the “Display” tab.
- Select the account’s latest date in QuickBooks in the Date From field section. You can leave it blank if you don’t want to pick it.
- Select the date of your most recent reconciliation in the Date to field section.
- Choose “Filters” from the drop-down menu.
- From the Account field menu, select the account you’re reconciling.
- Set the Date in the Entered/Last Modified box to the date of your most recent reconciliation. Then change the date to today’s date in the field.
- To run the report, click OK.
- Check your bank statement or credit card account for any inconsistencies or transactions that don’t match.
- Contact the individual who made the changes. There could be a reason for the change. Once you’ve figured it out, leave the transaction alone.
Step 3: Look for the Reconciliation Adjustments
Sometimes users make a reconciliation adjustment to force their bank records to match in QuickBooks. You should not make adjustments to your reconciliation without the guidance of your accountant. Also, adjustments don’t resolve errors, and if you resolve an error, a subsequent adjustment will cause processing problems. So, make sure no one has made incorrect adjustments to the account.
- Select the “Chart of Accounts” option
- Open the account for reconciliation discrepancies.
- Set dates for your most recent reconciliations in the Dates column.
- If you see any inaccurate adjustments that are affecting the account balance, inform the person who made the changes. Remember that your changes don’t conflict with the adjustments.
Follow all the instructions for resolving the problem in QuickBooks Bank Reconciliations.
Though QuickBooks is a comprehensive solution that provides multiple powerful functions, problems or glitches do occur. QuickBooks Bank reconciliation statements hold a pivotal role and must show attributes of correctness. Hence, any discrepancy in them can affect your financial records. It is why you must follow the above-listed steps to have accurate and precise statements.
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Why I Should Undo Bank Reconciliation Statements
There are a handful of reasons, as to why one would need to undo bank reconciliation statements:-
- Having entered the payment date inaccurately.
- There might have been an un-reconciled transaction. Every transaction should be verified accurately, and it should be ensured that there are no checks left with due payments.
- There might have been a case of wrong bank reconciliation. To ensure that there are no surprise bank reconciliation statements, a thorough review should be carried out.
How To Delete or Undo Reconciliation for an Account
- Select the Banking option.
- Then, directly above the action column, select the option “Go to Account History/Registry.”
- The next step is to determine which transactions need to be reconciled.
- While you’re at it, click the R option in the top line, which is located between the amount and deposit options.
- This will alter the status of the slot from BLANK to C, indicating that it has been cleared.
- Simply click the Save option as the final step; you’ll then see a pop-up, click YES, and you’re ready to go.
How to I Manually Undo Reconcile in QuickBooks
In case the steps mentioned above fail to solve your problem, you can also opt for a manual option, as follows:
- Click on the settings icon on your accounting software and select a chart of accounts.
- When this account list appears, as in the following step, you have to click on the row that you wish to view and click on the button “Account history”.
- After identifying the account you need to make changes in, you can change the reconciliation status by clicking on the checkbox next to it.
- As you are making this QuickBooks file disaster recovery, it’s vital to be familiar with the abbreviations. Here C means Cleared, R means Reconciled, and BLANK space implies that none of the two options have been chosen as of yet.
How to Undo a Bank Reconciliation in QuickBooks Online
Steps to Undo Bank Reconciliation QuickBooks Online:
- Click on the Setting icon and then on the Reconcile option that appears below Tools.
- Select the bank account for which reconciliation is required.
- Now, move your cursor over to the month of the reconciliation, and you’ll notice an Undo Option emerge, which you must select. After that, you’ll see a message appear, which you must Choose.
- After you’ve completed the above steps successfully, you’ll see a success screen display on your monitor, and you’ll need to click OK again.
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How to Reconcile Bank Statement in QuickBooks Desktop
Having a decade’s worth of experience in QuickBooks cloud hosting, we find it safe to say that fixing bank reconciliation QuickBooks problems is way easier on the desktop version of QuickBooks, than on the online version.
Follow these steps, to do so:
- To reconcile your account, go to the Banking Tab or Screen and Click the “Reconcile” option.
- Begin Reconciliation Screen will appear. “Choose account” you want to reconcile and fill other details and click on “Continue“.
- Lastly, to complete the procedure Click on “Reconcile Now”.
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How To Deal with Various Statements that are Reconciled One-After-Another
When you have to reconcile all the transactions at once, you should follow these given steps:
- Click on ‘Registers’ from the Banking menu.
- Now, select the exact account that needs to be dealt with, from the drop-down menu of the Register.
- Click on the particular transaction that you wish to Un-reconcile, and then erase the “R” alphabet that you find written right above the transaction. You can then change it as per your request.
Why does my Bank Reconciliation Not Balance in QuickBooks
At the start of the bank reconciliation in QuickBooks, someone submitted an inaccurate closing balance. In QuickBooks, there are duplicate or missing entries. Someone entered QuickBooks with money in their account that hasn’t yet cleared your bank.
Can QuickBooks Reconcile Accounts
QuickBooks automatically organizes your data, making bank reconciliation a breeze. Select the account you want to reconcile in QuickBooks. With a bank statement in hand, you may check off matching transactions one by one by checking the boxes next to them. Moreover, you must reconcile your bank, saving, and credit card accounts every month.