What to do, if your account’s transaction will not match with bank statements at the end of the reconciliation? Mainly, when we reconcile an account, we compare the transactions with the bank statements, which results should be $0.00. But what, if it will not be $0.00 at the end? Don’t worry, we will help you to get rid of this discrepancy.
In this article, we will talk about the QuickBooks reconciliation discrepancies issue, and its causes and solutions. Read the article till the end to get the right solution for the issue in QuickBooks Desktop.
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Why QuickBooks Reconciliation Discripencies Occurs
Mainly, the discrepancy issue does not appear till, you are entering the details of the transactions properly in the opening balance, and beginning balance. But if you do any changes or any adjustments in the accounts then you will definitely face the issue. here are some of the reasons for the problem, have a look;
- If someone, entered an incorrect ending balance in the starting of the reconciliation.
- And if you edited, and deleted transactions, whereyou have already reconcilied.
- The duplicate, and missing transactions can be the cause of QuickBooks reconsiliation descripencies.
- If you have made an adjustmet in the last reconciliation, with a journal entry in QuickBooks.
- You may be entering a transaction into QuickBooks, which already cleared.
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Procedure to Fix Reconciling Issue
In this procedure, we mainly run some reports and will adjust the reconciliation to fix the issues. You need not special requirements to complete the procedure. Read the following procedure to troubleshoot the issue while reconciling in QuickBooks.
Step 1: Cross-Check the Opening & Beginning Balance
At first, cross-check the opening balance, and beginning balance in QuickBooks. If both balances are accurate and match with each other then look for the other issues in the 2nd step.
Step 2: Look for the Edited Transactions
In the second step, you need to review some of the changed, deleted, and added transactions in different reports. Follow the steps to ensure about the transactions;
Run the Reconciliation Discrepancy Report
This report contains all of the details of the transactions, which are changed since the last reconciliation. And all of the transactions are sorted by the statement dates.
- Login to the QuickBooks Desktop.
- Visit the ‘Reports‘ menu, and choose the ‘Reconciliation Discrepancy‘ from the ‘Banking‘ section.
- After that, choose the account that you are reconciling, and click on the ‘Ok‘ option.
- Cross-check the report, and look for any issue.
- If you find any discrepancy then talk to the person, who have made the changes. And know the reason behind the changes.
- After that edit the transaction, as per your requirement.
Run a Missing Checks Report
The missing checks report consists of all of the missing checks, which may be throwing off the ending balance of the reconciliation. Review the report by following below steps;
- Again go to the ‘Banking‘ section, and choose the ‘Missing Checks‘.
- After that, choose the account, that you are reconciling, and click the ‘Ok‘ option.
- And cross-check that, all transactions on the report are in the bank statements, or not. If not, then
- If you find any mistake, then verify it again, and do changes according to the need.
Run a Transaction Detail Report
This report includes all of the details of the transactions in it. here you can cross-check everything, that you want to check.
- Visit the ‘Reports‘ menu, and select the ‘Transaction Detail‘ option from the ‘Custom Reports‘.
- Click on the ‘Display‘ tab. Here you will get a detail display form of transacations, make changes on it.
- Date From: Choose the earliest date in the QuickBooks.
- Date To: Choose the last reconciliation date.
- After that, go to the ‘Filters‘ tab, and make changes here.
- Account: Select the reconciling account.
- Entered/Last Modified: Set the date from (1st reconciliation), and date to (today’s date).
- Click on the ‘Ok‘ option.
- Check, is there any descripencies or not. If you find any issue then talk to the person, who made the changes.
Step 3: Adjust the Reconciliation
In some cases, we make an adjustment forcefully for reconciliation in QuickBooks to match with the bank transactions, which creates a big problem for later. Without any accountant’s guidance, you should not adjust the reconciliation. Because it may seem that the situation is handled by the adjustment, but it can be a major cause for the reconciliation issue in the future.
Follow the procedure, and review that, no one made an inaccurate adjustment.
- Select the Chart of Accounts, from the List menu.
- And double-click on the Reconciliation Discrepancies account.
- Set the dates of the last few reconciliations, in the ‘Date‘ field.
- If you see any adjustment in the account balance then make correction.
- And finish the reconciliation, after fixing the issue.
And if you are unable to find any discrepancies in accounts then undo the previous reconciliation until the correction of the opening balance.
It was everything about the QuickBooks reconciliation discrepancies. Hopefully, now you can tackle the situations through the given solution. Still, if you have any kind of doubts regarding this topic the contact our QuickBooks ProAdvisor for instant troubleshooting solutions.