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Reconciling difference but transactions match

Forum|Forum|1 year ago
March 19, 2025
5 replies
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Hello,

I am trying to reconcile an account but cannot figure out why I have a difference. The account says there's a difference of $61,661.66 I went through and manually checked each transaction. The account state shows 188 payments and 89 deposits. Same as what QB shows. The only thing I can think of is if an older transaction was changed from (C) cleared status to (R) reconciled? The account doesn't have any discrepancies but still shows this difference. I checked the activity log to see if I could trace which transactions would have caused this but it doesn't show those kind of edits. is there anyway I could create a journal entry to fix this issue?

QuickBooks Online

Best answer by Emma_P

Why is there a reconciliation difference in QuickBooks Online when all my transactions match the bank, and how do I fix it?

When every cleared transaction matches the bank but you still have a reconciliation difference, the cause is almost always the beginning or ending balance you entered, not the transactions. The most common version, and the fix in this thread, is entering the ending balance with the wrong sign: a positive figure on an account that carries a negative balance, like a credit card. Here's how to find and fix it.

1. Recheck the ending balance and date

Compare the ending balance and ending date you entered against the statement, exactly as printed, including the sign.
On a credit card or other liability account, enter the balance owed as a negative number if that's how the statement shows it. A positive value here can create a large difference on its own.

2. Confirm the beginning balance

Check that the beginning balance matches the ending balance from your last reconciliation.
If it doesn't, a previously reconciled transaction was changed. Select the "We can help you fix it" link before you reconcile to open the discrepancy report and correct what changed. See Fix issues with your beginning balance for accounts you've reconciled before and Fix issues at the end of a reconciliation in QuickBooks Online.

3. Only then consider a journal entry

You can create an adjusting entry to force the balance, but it won't fix the underlying cause, so use it only after you've confirmed the balances are right and the difference truly can't be traced, ideally with your accountant. See Enter an adjusting entry for a reconciliation in QuickBooks Online.

Official sources drawn from:

FishingForAnswers

Level 4

@Jameson If you knew what was wrong, you could, but I doubt it'll be necessary.

Although there are quite a lot of things that can result in these problems, there are only three real problems that can cause an account to have a reconciliation discrepancy.

The first is that the beginning balance is not correct.

The second is that the ending balance is not correct.

The third is that there are either missing or extra additions or deductions.

Going by your description, I'd start by checking the beginning and ending balances you are using.

J

Jameson Author

Thank you for the help. I feel like a dummy. I checked every possible reason. It didn't make sense that the debits and credits matched but the balance was still off. Turns out I entered the ending balance as a positive number when it should have been a negative ending balance. Glad I double checked and finally figured it out.

Thank you @FishingForAnswers

FishingForAnswers

Level 4

@Jameson We've all been there. Good luck with the year-end work.

M

MichaelaS

QuickBooks Team

You can create a Journal Entry (JE) to balance the account, Jameson. Please note that this won't fully address the root cause of the difference. As @FishingForAnswers mentioned, various factors can cause reconciliation discrepancies. It's best to check the Discrepancy Report to identify the changes affecting this.

Here's how to access it:

You'll get a message before you start reconciling.
Select the "We can help you fix it" link to open your discrepancy report.
Review the Discrepancy Report. Use it to decide if and how to make changes.
Edit them if necessary.

For reference on how to enter an adjusting journal entry and check other ways to review the discrepancy, here are the articles:

It's best to discuss any changes to your account with your accounting professional beforehand. If you don't have an accountant, find one in our Resource Center.

Also, if you need assistance managing your transactions, please visit our QuickBooks Live Expert Assistance website. Our experts are ready to guide you step by step, ensuring your financial records remain accurate and up to date.

Furthermore, you can refer to this article to complete year-end tasks and prepare for the new year: Year-end guide for QuickBooks Online.

You can always get back to this thread if you have more questions or concerns about handling your reconciliations in QuickBooks. The Community is always here for you.

Emma_P

Answer

Community Manager

Why is there a reconciliation difference in QuickBooks Online when all my transactions match the bank, and how do I fix it?

When every cleared transaction matches the bank but you still have a reconciliation difference, the cause is almost always the beginning or ending balance you entered, not the transactions. The most common version, and the fix in this thread, is entering the ending balance with the wrong sign: a positive figure on an account that carries a negative balance, like a credit card. Here's how to find and fix it.