How To Undo Reconciliation In QuickBooks Online Accountant

Do you know as a QuickBooks Online Accountant you have a special reconciliation tool? There can be situations where you will ask for multiple edits or undo several transactions on a past reconciliation. In this case, you undo the entire reconciliation and start from scratch. So, get a fresh start by undoing a reconciliation and learn how it can be easily done.

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Before beginning the procedure to undo reconciliation in QuickBooks Online, let’s get you familiar with its advantages. Also, know the main reason behind this process.

Reasons to Undo Reconciliation in QuickBooks Online

You can undo reconciliation for the following reasons:

  • The payment was recorded for an incorrect date.
  • A transaction was properly checked off but later was found that it had not been cleared yet.
  • The bank reconciliation was forced and now needs to be corrected in a systematic way.
  • The bank statement date was entered incorrectly or does not contain an actual date.

Advantages of Undoing Reconciliation

Here are the benefits for undoing reconciliation in QuickBooks Online:

  • Quickly spot fluctuations in income and respond accordingly.
  • Take quick, informed and decisive actions when you see financial opportunities or possible signs of danger.
  • Catch unseen bank errors that could cost you money, like a wrong total for deposit with multiple checks.
  • Prevention of possible fraud by employees, accounting professionals or vendors.

Steps to Undo Reconciliation in QuickBooks Online Accountant (QBOA)

Here are the steps to undo reconciliation in QuickBooks Online Accountant, but, before that, you have to download the attachments that you want to tie to the reconciliation. You will delete these attachments during the undo process. Let’s see the process:

  • Go to the QuickBooks Online Accountant login.
  • After signing into the QuickBooks Online Accountant, visit the ‘Clients‘ list.
  • Then find the customer and open the QuickBooks Online account.
  • Now you can see that, you will be taken to your customer’s company file.
  • Here go for the ‘Accounting‘ menu, and then select the ‘Reconcile‘ tab.
  • From the ‘Reconcile‘ tab choose the ‘History by account‘ option.
Reconcile an account
Reconcile an account
  • In the next step, choose the account that you need to reconcile and date range from the list.
  • From the drop-down list find the reconciliation.
  • Open the reconciliation report and click on the ‘View Report‘ option, if you haven’t already done it.
  • Then review any one discrepancies and make a change your client wants to make.
  • Now in the ‘Action‘ column, select the arrow option, and then the ‘Undo‘.
  • At last, click on the ‘Yes‘ option and then click on the ‘Undo‘ option to confirm it.

That’s it! The reconciliation is now undone.

NOTE: Please be aware that undoing a reconciliation automatically reverses any reconciliation that comes after it chronologically, based on the reconciled date.

How to Undo and Remove Transactions from Reconciliation in QuickBooks Online

Follow the procedure to undo and remove transactions from reconciliation in QuickBooks Online:

  • At the first step, you have to review the opening balance, beginning balance, and the ending balance for the account holding transaction.
  • If there is any fault in the opening balance, beginning balance, or in the ending balance then fix it.
  • After the complete review process, go for the ‘Accounting‘ menu to edit the transaction.
  • Select the ‘Chart of Accounts‘ option from the ‘Account‘ menu.
  • Then search for the account and click on the ‘View Register‘ option.
  • Choose the transaction you want to undo reconciliation and review the check column.
  • You can see ‘R‘ in the column if the transaction is reconciled.
Reconciled transaction
Reconciled transaction
  • After that click on the ‘Save‘ option and close the register.
adjusting entry
adjusting entry
  • And adjust the reconciliation or enter an adjusting Entry.
    • Go to the left menu, and choose the ‘Accounting‘ tab for the ‘Reconcile‘ option.
    • After that, reconcile your account.
    • Now from the drop-down menu, click the ‘Finish Now‘ option.
    • And confirm the adjustment date.
    • In the next step, click on the ‘Add adjustment and Finish‘ option, and click on the ‘Done‘ option.

How to Undo Last Reconciliation in QuickBooks Desktop Edition?

Undoing last reconciliation in QuickBooks Desktop edition such as QuickBooks Pro or Premier is somewhat different. If you use any of these QuickBooks editions, we will show you how you can undo the last reconciliation in a few simple steps, which are given below:

  • Open QuickBooks and sign in as an Accountant user.
  • Select the company file and click Reconcile Now from the Banking menu.
  • Click the Undo Last Reconciliation option.

Let’s understand how to undo reconciliation in QuickBooks in detail through this video.

How to Delete Reconciliation in QuickBooks Online Edition

The QuickBooks Online edition reconciles transactions separately and must be reconciled one at a time. Let us show you how this can be done easily.

You can undo reconciliation in QuickBooks Online edition through the steps given below:

  • Open QuickBooks Online and choose Registers from the Banking menu.
  • Select the account from the Register Name drop-down list.
  • Click (or tap if using the touch screen) on the transaction you wish to undo reconciliation for.
  • Delete the ‘R’ letter at the top of the transaction in order to change its rank to Unreconciled.

In case you plan to reconcile each transaction for a certain period, it is necessary that you first print a list of reconciled transactions using the Reconcile alternative from the Banking menu.

Why Can’t I Undo a Reconciliation in QuickBooks Online

‘Why can’t I undo a reconciliation in QuickBooks Online?’ This is a common query asked by most of the QuickBooks Online users. Here is the answer to this query to clear the doubt.

Sometimes the users are unable to undo reconciliation in QuickBooks Online because of the invisible ‘Undo‘ option. If the ‘Undo’ option is not showing on the ‘Action‘ drop-down then, maybe you are not using the QuickBooks Online Accountant or the (QBOA) version. In this situation, you can follow the below-given procedure:

  • In the first step, you have to go to the ‘Gear‘ icon, which will be at the top of the page.
  • From there, choose the ‘Chart of Accounts‘ option, under the ‘Your Company‘ column.
chart of accounts tab
chart of accounts tab
  • Now choose the exact account for the transaction.
  • In the next step, go to the ‘Action‘ column, and click on the ‘View Register‘ option.
  • Now you have to detect the exact transaction to edit.
  • Go to the ‘Reconcile Status‘ column, and change the reconcile status by repeatedly clicking on the top line of the transaction. And then, click the ‘Save‘ option.
    • C- Cleared
    • R- Reconciled
    • Blank- Not cleared or reconciled

You can reach out to your accountant if you want to undo the entire reconciliation. As the undo option for the reconciled period is only available for the QuickBooks Online Accountant. This is because they better understand the cause and effect of undoing a reconciliation. For more information talk to our QuickBooks ProAdvisor at our toll-free number +1-877-355-0435.

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