QuickBooks Bank Reconciliation Error
QuickBooks Online and Desktop are excellent for integrating with third-party banking apps and services. If you have linked QuickBooks to your online banking, you will need to reconcile accounts to ensure your banking data is correct. However, QuickBooks Bank Reconciliation error is a frequent QuickBooks desktop error during the reconciliation procedure.
QuickBooks Bank Reconciliation Error
Table of Contents
The Bank reconciliation procedure must be conducted regularly to ensure the accuracy of the accounting data.
To understand the primary causes of the QuickBooks Bank reconciliation error and the quick methods to solve them, continue reading this article.
What Is QuickBooks Bank Reconciliation Error?
Businesses must balance their bank accounts monthly to avoid mistakes. The frequent QuickBooks reconciliation of bank accounts provides consumers with the following assurances:
- This method can be used to solve the problem. Furthermore, users can examine discrepancies between records and banks.
- It is also beneficial to receive timely information on any fraudulent transactions that may take place.
It is recommended that customers reconcile their bank/credit card accounts inside QuickBooks frequently to verify that the results are accurate.
Causes Of QuickBooks Bank Reconciliation Error
- Whether missing checks are present in QuickBooks
- Missed transaction entries in the QB transactions database
- Incorrect adjustments in QuickBooks
- Errors while entering data into QuickBooks
Fix QuickBooks Bank Reconciliation Error
Step 1: Examine Your Opening And Beginning Balances
At first, make sure that the opening and starting balances are correct. Once you know these are correct; you can search for other problems.
Step 2: Search For Changed, Deleted, Or Added Transactions
QuickBooks includes numerous reports that show you if anything has been updated, deleted, or added:
Run A Reconciliation Discrepancy Report
You can use this report to see any transactions that have already been changed since your last reconciliation. They are all resolved by statement dates.
- Navigate the Reports menu and then select Reconciliation Discrepancy from the Banking menu
- Select the account you are reconciling and click on OK
- Review the report to view any discrepancies
- Verify and see who made the new modifications and once the reason is clear, you will know whether or not a transaction edit is required.
Run Missing Checks Report
This report identifies any missing checks. These could be influencing the final balance of your reconciliation.
- Go to the Reports menu and open the Banking option
- Then click on Missing Checks
- After that, select the account you want to reconcile and click on OK
- Now, review your report to check any transactions that don’t appear on your bank statement. They shouldn’t be on your reconciliation if they aren’t on your bank statement.
Run the Transaction Detail Report
- Browse the Reports menu and open Custom Reports
- Select Transaction Detail
- Then, choose Display tab
- Next, select the oldest Date in QuickBooks for the account in the Date From column. This step is optional, so you can leave it.
- After that, go to the “Date to Field” and select your most recent reconciliation date.
- Now, navigate the Filters tab, go to the Account Field, and select the account you are reconciling
- Then, under the Entered/Last Modified column, change the Date to the date of your most recent reconciliation
- Next, change the Date in the field to the current date
- Select OK
- Check your bank statement for any inconsistencies or transactions that don’t match
Step 3: Check For Reconciliation Adjustments
Users will sometimes make a reconciliation modification in QuickBooks to force an account to match their bank information. However, users shouldn’t perform a reconciliation adjustment in an accountant’s correct direction. Adjustments cannot correct those flaws; nevertheless, if the errors are corrected later, the adjustment may cause problems in the future.
Hence, review the account to ensure that no one made an incorrect adjustment.
- At first, open Chart of Accounts from the drop-down menu
- Then, navigate the Reconciliation Discrepancies account
- Now, set a date for the last few reconciliations in the Date section
- If you see any adjustments that cause errors in your account balance, contact the person who made the adjustment. Also, check that your corrections don’t conflict with the adjustment.
Step 4: Finish Reconciling
Once you have fixed everything, you can finish the reconciliation procedure. If you can’t find any errors in your records, you may have to correct the past reconciliation until the opening balance is correct.
Furthermore, if someone modified or deleted a transaction from years back, you may have to fix your reconciliations for the previous several years to get to the point where the opening balance is correct.
We have compiled all relevant information about QuickBooks Reconciliation Discrepancy and potential solutions and hope that you find this article useful. If you require assistance with a reconciliation difference in QuickBooks or would like more information, contact the QuickBooks error support team.