QuickBooks is a third-party software to keep a record of your transactions. Reconciliation is, in simpler terms, matching the transactions you enter with your bank statement. There is a high chance that you face a reconciliation issue while going through the process. This error occurs when there is a significant difference between the two balances (the one you entered and your bank statement). This is why it is important to reconcile your numbers every now and then.
You can easily solve this error on your desktop with just a few clicks on your screen. This blog will provide you with the answers to a commonly asked question, “How to Fix QuickBooks Bank Reconciliation Problems?” Let’s take a look.
Causes Of QuickBooks Reconciliation Problems
If you are wondering why the reconciliation process occurs, here are a few reasons that might be the cause of it.
- You must have entered the incorrect date of the transaction in your QuickBooks.
- There is a chance that you might have missed a pending cheque or two, and this is why the problem has happened.
- Additionally, you might have deleted or edited some transaction that does not match with your bank statement.
- This also occurs if you have changed your bank account of the already reconciled data.
- Also, check if you have missed any transaction or made a wrong entry.
Fix QuickBooks Bank Reconciliation Problems
There are altogether four solutions to the question, “How to Fix QuickBooks Bank Reconciliation Problems?”
This solution works if you have edited or deleted any transaction in your books.
1. Create Reconciliation Discrepancy Report
Reconciliation Discrepancy Report shows all the changes that you have made to your last reconciled transactions.
- Firstly, go to the Banking option available under Reports and Reconciliation Discrepancy.
- There, click on the right account from the provided list and hit OK.
- Once you have the report, go through the report to find the discrepancies, if any.
2. Create Report For Missing Cheques
The missing cheque report gives you an idea about any cheques that are lost or missed and haven’t been added to the QuickBooks.
- To get the report, start by going to the Report menu, where you will find the Banking option.
- Under that section, you will click on the Missing Cheques option.
- Now, select the correct account and press OK.
- The report will appear on your desktop screen. You can now check for any missed transactions.
3. Get the Report Of Transaction Detail
This report will show all the transactions that you have made. This is a bit lengthy, but most appropriate report to cross-check your bank statement.
- Open QuickBooks and open the Reports menu.
- Under that section, select the Customer Reports option.
- After you enter the customer reports, click on the Transaction Detail and look for the Data Form Field.
- Here, you will find Data To section. In the given space, enter the last date when you reconciled your data.
- Now, head to the Filters to get the report.
- Under Accounts, jot down the account you are working on. In the Last Modified section, enter the dates you want to reconcile the data of.
- Once you enter the filters, you are good to go. Click on OK, and your report will pop up on the screen.
- Now, cross-check the transactions in the report with your bank or credit card statement to look for the differences.
Once you find the difference in your QuickBooks, edit the same and get your reconciled data
Make Reconciliation Adjustments
Reconciliation arrangements have to be made if a forced reconciliation has taken place. This is when reconciliation adjustments may happen.
- In your QuickBooks, go to the Lists and select Chart of Accounts.
- Now, double-click on the Reconciliation Discrepancies account.
- Finally, open the Dates section and put in the filters.
- Once done, you can make the required Reconciliation arrangements.
Fix the balance alerts that appear in the beginning
These alerts pop up under the following circumstances:
- In case you need to make an edit to the amount or the date of a transaction.
- When your previous reconciled previous data fails
- If the reconciliation that you did before has some errors
- You omitted a transaction, and that created the error
This is how you can fix this error:
- Get the Discrepancy Report from the Beginning Balance Discrepancy.
- Look for the reported transactions and make corrections to them.
Take note that there are various transaction errors that can cause the alert. Each type has its own solution mentioned below:
- Required editing: Make the needed edits to the data or account and fix the error.
- Unreconciled Data: Go to the checkmark column and change it to reconciled (R) or none.
- Error Reconciliation: Again, head to the checkmark and mark it as checked (C) or none.
- Deleted Entry: If you have deleted an entry, you need to create a new transaction for the same. Once done, add it to the View Register and wait till the transactions get reconciled and the status changes to be reconciled. Now, go back to the Reconcile page and see if you are still getting the discrepancy alert. If so, make sure to click on the link if your added transaction is there and if it has made a change in the amount of the reconciled data.
Once you are done with the steps, don’t forget to save the changes. Every time you will make a correction, the difference will decrease and will eventually come to $0.00, which means your beginning QuickBooks balance matches with the bank statement. Now that you have reached $0.00, you can resume reconciling.
Assure the Number of the Transactions Match
Another solution for How to Fix QuickBooks Bank Reconciliation Problems is by comparing the number of transactions in your bank statement with that on the reconciliation page. This is how to check the same:
- In your QuickBooks, go to the reconciliation page. There, head to the Transaction Type. You can find the same settings in your bank statement under the heading Payments and Deposits, and you can find Charges and Payments in credit card accounts.
- Now, jot down the number of transactions and can finally compare it with the bank statements.
You can choose any of the four solutions mentioned above as per the requirement and then resume reconciling your data. Once all the errors are removed, finish the process, and you are done with the reconciliation process.
If you landed on this page looking for the answers to How to Fix QuickBooks Bank Reconciliation Problems, then we hope we have helped you in every possible way. The blog has four different solutions that can help you with fixing your reconciliation problems. Each solution requires just a few clicks on the screen and a bit of your precision time, and you will have your reconciliation done before you know it.
However, if you are still left with some queries or have other questions related to reconciliation or QuickBooks, you can reach out to our team of experts at email@example.com at any time. Our professionals will make sure that they understand your query and try to figure out the best fix for the same.
FAQs on QuickBooks Reconciliation Problems
1. Why do QuickBooks Reconciliation Problems usually occur?
Some of the major causes of QuickBooks reconciliation problems can be a missed cheque, edited or deleted transaction, entering incorrect values, changing bank accounts, or missed entry.
2. What are the main points to keep in mind to resolve QuickBooks Reconciliation Problems?
Keep in mind to take a backup of your company file from QuickBooks. Then, start by correcting the beginning QuickBooks balance. Finally, eliminate the unclear transactions.
3. Is QuickBooks able to reconcile transactions?
You can easily reconcile your transactions in QuickBooks. Make sure you do it at the end of every month and compare it with your bank statement or credit card account.
4. What happens if the balance of QuickBooks reconciliation does not match with the bank statement?
If the balance does not match, that clearly means you are facing QuickBooks Reconciliation Problems. In such a situation, the data is marked as unreconciled and therefore needs to be corrected.
5. How can you resolve QuickBooks Reconciliation Problems?
You can resolve the QuickBooks Reconciliation Problems in four ways. They are:
- Creating Reconciliation Discrepancy Report, Missing Cheque Report, or Transaction Detail Report.
- Making Reconciliation Adjustments
- Fixing the beginning balance alerts
- Assuring the number of the transaction match
6. How to resume reconciling data after the problems are resolved?
Once you have made the required edits to the transactions and have ensured that the balance of your QuickBooks matches your bank statement or credit card account, you can simply resume the process.
Just start the reconciliation again, click on the Finish button, and finally hit the Done button.