Learn what to do if QuickBooks Online doesn't match your bank statement at the end of a reconciliation.
When you reconcile an account, you compare transactions in QuickBooks with the same ones on your bank statements. After you review everything, the difference between the ending balance in QuickBooks and your bank statement should be CA $0.00.
If the ending balances don't match, don't worry. Here's how to find and fix issues so you can finish reconciling.
| Tip: Our in-product QuickBooks Digital Assistant can walk you through the process of fixing issues with your reconciliation. Simply open the Digital Assistant, type "fix reconciliation", and follow the instructions. Get started now. |
- Learn what causes ending balance issues
- Step 1: Review the opening, beginning, and ending balance
- Step 2: Combine multiple transactions into a single transaction
- Step 3: Eliminate transactions you know are correct or enter transactions that aren't in QuickBooks
- Step 4: Remove transactions that aren't on your bank statement
- Step 5: Review transactions that are slightly off
- Next steps: Finish reconciling
Learn what causes ending balance issues
- Someone entered an incorrect ending balance at the start of the reconciliation.
- There are missing or duplicate transactions in QuickBooks.
- Someone entered transactions into QuickBooks that haven't cleared your bank yet.
Step 1: Review the opening, beginning, and ending balance
If you haven't already, review the opening and beginning balances. When you know they're accurate, move on.
When you start a reconciliation, you enter the ending balance from your bank statement. QuickBooks uses this to check for accuracy. Make sure you entered the correct amount:
- While you're reconciling an account, in the Reconciliation window, select Edit info.
- Review the Ending balance and Ending date.
- Check your bank statement. Make edits as needed.
- When you're done, select Save. If there's still a difference in QuickBooks, move on to Step 3.
Step 2: Combine multiple transactions into a single transaction
If your bank combined several payments as a single record, you should do the same in QuickBooks. Sometimes, we enter payments individually, which makes us think there's an error.
If you notice you didn't combine the same payments in QuickBooks, put them into the Undeposited Funds account. Then make a Bank Deposit to combine them into a single record.
If there's still a difference in QuickBooks, move on to Step 3.
Step 3: Eliminate transactions you know are correct or enter transactions that aren't in QuickBooks
You now know your ending balance is correct, and have reviewed possible issues. You can quickly narrow down the list of transactions to find the ones causing issues.
Take out your bank statement. Physically mark the transactions that match the ones you entered into QuickBooks. These aren't causing issues.
Let's make sure you entered everything into QuickBooks. If your accounts are connected to online banking, review and categorize all of your downloaded transactions. You can't reconcile them until you do.
Then, review the list of transactions in the Reconciliation window. If you see transactions on your bank statement that aren't in QuickBooks:
- Go to Sales and select All sales (Take me there) or got to Expenses and select Expenses (Take me there).
- Look for transactions you see on your bank statement, but not in QuickBooks.
- If you find any, select and open them.
- Check the Deposit to or Payment account. Make sure the transactions are in the correct account. Select a different account as needed.
Now that you've triple-checked QuickBooks, you can enter these missing transactions. Use your bank statement as a guide. Enter transactions you see on your bank statement but aren't in QuickBooks as new sales receipts or expenses.
Step 4: Remove transactions that aren't on your bank statement
Now let's do the opposite. Review the transactions in the Reconciliation window. Look for any that are in QuickBooks, but aren't on your bank statement. If you see any:
- Check the transaction date and review your bank statements for that time period.
- Make note of the date and amount of the transaction.
- Run a Past Reconciliation report for those dates.
If the transaction wasn't on the past reconciliation report
If a transaction was on a previous bank statement, but wasn't on the past reconciliation report for those dates:
- Go to Transactions and select Chart of accounts (Take me there).
- Find the account you’re reconciling and select Account history.
- Find the transaction and select it to expand the view.
- If the box in the checkmark column is blank or has a C, make sure the transaction is accurate.
- Select the box in the checkmark column until you see an R. If there's already an R in the checkmark column, leave it alone.
- When you're done, select Save.
If the transaction was on the past reconciliation report
Finally, let's look for duplicate transactions.
- Go to Sales select All sales (Take me there) or go to Expenses and select Expenses (Take me there).
- Sort the lists by date, customer, supplier, or amount.
- If you find obvious duplicates, you can safely delete them.
- Go to Transactions and select Chart of accounts (Take me there).
- Find the account you’re reconciling and select Account history.
- Find the transaction and select it to expand the view.
- Select Delete and then Yes to confirm.
| Important: Only delete transactions if you're absolutely certain they're a duplicate or error. If you aren't totally sure, talk to your bookkeeper. |
When you're done, move on to Step 5.
Step 5: Review transactions that are slightly off
If a transaction in QuickBooks closely matches one on your bank statement but the amount is slightly off, reach out to your accountant. You shouldn't edit transactions, like invoices, that customers already paid for.
On the other hand, your bank sometimes adds fees to transactions that weren't included when you entered it into QuickBooks. Check your bank statement. If fees were added:
- Select + New.
- Select Bank deposit.
- Follow the steps to add a bank or processing fee to the account you're reconciling.
- In the Memo section, add a note about which transaction it's tied to.
Financial institution mistakes
If you can't find errors in QuickBooks Online, there may be an error with the bank or credit card company. Here's how to check for mistakes on your bank or credit card statement.
Next steps: Finish reconciling
Now that your accounts are balanced, you can finish reconciling.