by Intuit•232• Updated 5 days ago
Learn what to review so you can start reconciling.
Each time you start reconciling an account, you review the beginning balance in QuickBooks. It's the amount in the account at the beginning of the time period you're reviewing. Think of it as a checkpoint. It lets you know if you're starting with accurate numbers.
The beginning balance amount should match what's on your bank statement for the same start day. If it doesn't, don’t worry. QuickBooks lets you know if and what you need to change. Here's how to fix beginning balance issues so you can start reconciling.
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Tip: If you've never reconciled this account before, don't follow these steps. Here's what to review for the first time you reconcile an account. Or, if you're new to the entire process,start with our reconciliation guide.
- Someone entered an incorrect opening balance when they created the account in QuickBooks.
- Someone added transactions that are older than the opening balance,but didn't edit the original opening balance entry to reflect the change.
- Someone edited, deleted, moved, or unreconciled an already reconciled transaction. This changes the ending balance of your last reconciliation, which impacts the beginning balance of the next one.
- Someone manually reconciled a transaction, so it didn't show up on the next reconciliation.
Step 1: Review the original opening balance
The opening balance is the starting point for accounts in QuickBooks. If it’s incorrect, it affects all future reconciliations.
Make sure your opening balance is correctbefore checking your beginning balance. Then move on to Step 2.
Step 2: Check your bank statement
Make sure you're reconciling the correct account for the correct month:
- Go to Transactions, then select Reconcile (Take me there).
- Select the account that you want to reconcile from theAccount ▼ dropdown.
If you have multiple accounts at the same bank, or more than one account of the same type, make sure you're reconciling the right one.
Step 3: Match and categorize downloaded transactions
If your account is connected to online banking,match and categorize all of your downloaded transactions before you start reconciling. You need to categorize everything to get your final correct beginning balance.
Step 4: Review any discrepancy reports
If anyone has made a change that affects your beginning balance, you'll get a message before you start reconciling.
- Select theWe can help you fix it link to open your discrepancy report.
- Review the discrepancy report. Use it to decide if and how to make changes.
- Before editing anything, talk with whoever made the changes - they may be intentional.
Once you know you need to make corrections, review each transaction in the report one at a time:
- Select View to see the history of changes to the transaction.
- Review the Change Type column. This tells you what changed.
- Make edits based on the message in the Change Type column:
This means someone edited a reconciled transaction or moved it to another account. To fix it:
- Select the transaction to expand the view.
- Select Edit to open the form.
- Adjust the total or change the account as needed.
- Select Save and close.
This means someone unreconciled the transaction. To reconcile it again:
- Go to Transactions, then select Bank transactions (Take me there).
- Select the account you want to reconcile again, then select Go to bank register.
- Select Reconcile.
- Enter the info from your statement in the Ending balance field and Ending date field. Then, select Start reconciling.
- Review the transactions. Then, put a checkmark if it matches the transaction in your bank statement. If not, don’t put a checkmark.
- Select Finish now.
This means someone has already reconciled the transaction by accident. To remove it and add it to your next reconciliation:
- Select the transaction to expand the view.
- Select the box in the checkmark column until it's blank or you see a C. This removes the transaction from the reconciliation.
- Select Save.
This means someone deleted the transaction. If this was an accident, recreate the transaction exactly as it appears on your discrepancy report:
- Select +New.
- Select the correct form (invoice, sales receipt, expense, etc).
- Fill out the form and select Save and close.
- Go to Bookkeeping or Accounting, then select Chart of accounts (Take me there).
- Find the account that you put the transaction into and selectView register.
- Find the transaction and select it to expand the view.
- Select the box in the checkmark column until you see an R. This manually reconciles the transaction.
- Select Save. If you still see an alert the next time you reconcile, open the discrepancy report. The deleted transaction may still be on the list, but the difference should be $0.00. It won't affect your reconciliation.
After you review everything on the discrepancy report, the Total Discrepancy Difference on the report should be US $0.00. Check the beginning balance again in QuickBooks. Itshould match the beginning balance on your bank statement. Select Resume reconciling to continue reconciling.
Next steps: Start reconciling
Once you know your beginning balance is correct, you can start reconciling. If you see issues in the middle of your reconciliation, here'swhat you should review.
If you’ve followed everything in our reconcile guide but still have questions, connect with your accountant. They can help you get back on track.
Get a QuickBooks-certified bookkeeper to help you categorize transactions and reconcile your bank statements every month. Learn more about QuickBooks Live Bookkeeping.
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