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Mari-HI
New Member
August 31, 2026
Question

QBO Reconciliation Issue After Prior-Year Reconciliations Were Completed

  • August 31, 2026
  • 1 reply
  • 29 views

I'm hoping someone can provide guidance before I make things worse.

A CPA firm reconciled my FHB Checking account through December 31, 2024, and the December reconciliation showed a $0 difference. After year-end, I had to make corrections involving a previously closed/reconciled period and now I'm attempting to reconcile January and February 2025.

In the January 2025 reconciliation, I'm seeing transactions from October and November 2024 appearing in the reconciliation window that should not be there. Specifically, I have transactions totaling $18,000 ($5,000, $10,000, and $3,000) that appear to be related to another bank account (BOA), yet they are showing in the FHB Checking reconciliation screen. [8.31.26 1 | PDF]

I also know that some historical deposits were deleted while correcting prior-year issues. These changes occurred after the CPA completed the 2024 reconciliations.

Current symptoms:

  • December 2024 reconciliation completed successfully by CPA with no discrepancy.
  • January 2025 reconciliation shows an $18,000 difference.
  • When I select certain historical transactions, the difference changes but does not reconcile to zero.
  • After working through February 2025 and verifying debits and credits against the bank statement, I still have an unresolved difference (currently about $4,390.96).
  • The Reconciliation Discrepancy Report is showing historical transactions from 2024. [8.31.26 1 | PDF]

My questions:

  1. If reconciled transactions were modified, reassigned to another bank account, or deleted after a prior year's reconciliation was completed, can they reappear in a later reconciliation window?
  2. Should I be trying to correct the underlying historical transactions or using a reconciliation adjustment/journal entry?
  3. Is my best course of action to have the CPA undo/review the January 2025 reconciliation and repair the historical changes before proceeding with the 2025 reconciliations?
  4. What reports would you recommend to identify exactly which historical changes are affecting the January 2025 beginning balance?

My concern is that if January is not corrected properly, every subsequent month in 2025 will inherit the problem.

Thanks in advance for any suggestions.

1 reply

Lolly_NCQuickBooks Team
QuickBooks Team
September 2, 2026

Yes, modifying, deleting, or reassigning previously reconciled transactions breaks your beginning balance and strips their reconciled status. This explains why those $5,000, $10,000, and $3,000 BOA transactions surfaced in your January 2025 FHB Checking reconciliation: once reassigned to FHB Checking after the fact, QuickBooks Online treated them as new, unreconciled items.

 

We do not recommend using a reconciliation adjustment journal entry to fix this issue. While a journal entry forces the reconciliation to balance on screen, it leaves the underlying transaction history uncorrected. It creates reporting errors in both your financial statements and future reconciliations. The right process is to go back and correct the original transactions that were changed or deleted.

 

Yes, that is the right approach. Only your CPA using QuickBooks Online Accountant (QBOA) can undo reconciliations, and they must work backward starting from the most recent month. Because undoing a prior reconciliation automatically resets all subsequent months, your CPA should undo February first, undo January, correct the modified historical transactions, and then re-reconcile both months in documented order.

 

To identify exactly what changed, run two reports. First, check the Reconciliation Discrepancy report, which shows transactions modified after reconciliation. Second, review the Audit Log by filtering for dates starting from when your December 2024 reconciliation was finalized, looking for any changes made to transactions within that period. Provide both reports to your CPA before they start, ensuring a clear starting point.

 

If you need any further assistance or have additional questions regarding reconciliation, I'm here to help. Feel free to ask anything related to the topic.

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