Bank transactions are recorded at two different places for the users who have connected their bank account with the QuickBooks application. The transaction is recorded in QB as well as bank accounts. QuickBooks reconciliation discrepancy arises when QB record does not match the bank statements at the end of reconciliation. It means that the ending balance visible in QuickBooks and bank accounts is different. The difference is $0.00 between two records for a reconciliation report with no discrepancy. This issue can occur in both QuickBooks desktop and online versions, and you need to run multiple reports to fix it.
Facing QuickBooks reconciliation problems and don’t know what to do next? The easiest way out is to reach out to an expert at +1-(855)-955-1942, and they will provide you with all the necessary technical assistance.
Reasons for QuickBooks Reconciliation Discrepancy
There is a lot of scope for human error that can lead to QuickBooks reconciliation problems. The reasons that can cause discrepancy of ending balance for two reports are as follow:-
- The user entered the wrong ending balance at the start of the reconciliation report.
- A transaction was edited or deleted, which was already reconciled.
- A transaction is missing or duplicated in the QuickBooks application.
- The user entered a transaction into QuickBooks that the bank hadn’t yet cleared.
- An adjustment was made in the last transaction with a journal entry.
Method to Resolve QuickBooks Reconciliation Problems
Users need to go through their opening and beginning balances and run various reports to find out what is causing the error. You need to make changes to accounts and make adjustments to ensure that all discrepancies are corrected. Let’s look at the steps you need to follow:-
Step 1: Check Your Opening and Beginning Balances
Go through the opening and beginning balances for both QuickBooks and bank accounts. You need to make sure QuickBooks previous reconciliation report error is not creating a discrepancy in your current report. You need to make sure that the beginning balance for both QB and bank are the same.
Step 2: Figure Out Changed, Deleted or Added Transactions
You need to run multiple reports to find out about the changed, deleted, or added transactions. These solutions help you single out the transactions causing QuickBooks reconciliation discrepancy. These are the steps you need to follow:-
Reconciliation Discrepancy Report
This report helps you determine which transactions have changed since your last reconciliation. The sequence is as per the date when the transactions were made. These are the steps you need to follow to run a Reconciliation discrepancy report:-
- Click on the Reports tab and move your cursor over Banking.
- Choose Reconciliation Discrepancy and choose the account you’re reconciling.
- Tap on OK and go through the report. Find out if there is an edited transaction causing the discrepancy.
- Inquire why the changes were made and then edit it if required.
Missing Checks Report
This report helps you find out if any check was missing causing the discrepancies. These are the steps you need to follow:-
- Click on the Reports tab and move your cursor over the Banking menu.
- Choose Missing Checks from the list and choose the account you’re reconciling.
- Tap on OK and go through the report. Find out if any missing check wasn’t recorded, causing the discrepancy.
- If a transaction is not on your bank statement, make sure they are also not recorded in your QuickBooks accounts.
Transaction Detail Report
This report helps you find out if there were any changes in the transaction that potentially led to QuickBooks reconciliation problems. These are the steps you need to follow:-
- Tap on the Reports tab and move your cursor over Custom Reports.
- Choose Transaction Detail and go to the Display tab.
- Choose the most recent date in the Date From field in QuickBooks for the account. You can leave it blank if you want to.
- Tap on Date to field and select the date you performed reconciliation.
- Go to the Filters tab and choose the account you’re reconciling in the Account field.
- Now go to the Entered/Last Modified field and set the Date from your last reconciliation. Enter your current date in Date to field.
- Tap on OK to run the report.
- Go through the transactions and find the transactions that don’t match what is on the bank statement.
- Inquire why the changes were made and edit it if required.
NOTE: Do a mini-reconciliation if you need to add transactions or if you need to modify transactions you have already reconciled.
Step 3: Find the Reconciliation Adjustment
Many users tend to make QuickBooks reconciliation discrepancy adjustments to match the closing balance for both the reports despite understanding why the discrepancies are occurring. You should always make sure that the adjustment you are making has a reason and will not create any problem in the future.
You need to go through the account and ensure that no incorrect QuickBooks reconciliation discrepancy adjustment were made. These are the steps you need to follow:-
- Click on the Lists tab and choose the Chart of Accounts.
- Go to the Reconciliation Discrepancies account.
- Set the dates for your last few reconciliations in the Dates field.
- If any adjustments are causing the account balance to be inaccurate, you need to inquire about the adjustment. Ensure that your corrections made are not conflicting with the adjustment.
This is all about the QuickBooks reconciliation discrepancy issue. We hope that now you know how to run various reports and make all the required adjustments. If you still have any doubts left, reach out to an expert at QuickBooks Data Service Solutions Helpline Number +1-(855)-955-1942 and they can provide on-call assistance.