If you're having an issue with account reconciliation and your opening balance is correct, this article is designed to help you identify the cause.
For help with reconciling when your opening balance is not correct, see Make an incorrect reconcile opening balance match the bank statement.
Opening balance is correct with unreconciled historical transactions in register
If you have unreconciled transactions from previous periods in QuickBooks Online which have appeared on your bank statement in the past but your opening balance matches, then one or more of these old transactions have already been accounted for (duplicated and marked with an R).
You need to identify the transactions to fix this issue:
- Go to the Settings ⚙ icon.
- Under Tools, select Reconcile.
- Note the opening balance.
- Select Settings ⚙️.
- Select Chart of Accounts.
- Select the account you're trying to reconcile.
- From the Action column drop-down menu, select Run Report.
- Select Customize.
- Set the Report period to All Dates.
- Apply the following filters:
- For QuickBooks Online Plus or Essentials: In the Rows/Columns section, select Change Columns, then select the Last Modified checkbox. In the Filter section, select the Cleared checkbox and select Reconciled from the drop-down list.
- For QuickBooks Online EasyStart: Select Clr in the Sort By field.
- Select Run report.
Transactions with Adjust or Adjustments in the Memo column and the letter R in the Clr column may be causing the issue. Adjustments were made when a previous reconciliation did not balance, and an adjustment was put in to take the place of an actual transaction that was either missing or duplicated.
If there are no adjustments once the historical transactions have all been resolved and the report correctly reflects the opening balance, you should be able to continue your reconciliation.
Opening and ending balances are correct but the reconciliation still does not match
When reconciling, you have to enter the ending balance which comes from your bank statement. It's imperative that this balance is entered accurately.
If your opening balance and ending balance are correct and the difference does not equal 0, then the error lies in the transactions that have been check-marked.
Double-check the following:
- If you see a corresponding transaction on both the report and bank statement, cross it off and move to the next transaction.
- If the report from QuickBooks Online has a transaction that is not on the statement from the bank, select the letter R in the register to remove it.
- If the report from QuickBooks Online has a transaction that is on the statement from the bank but the amount is different, edit the transaction to reflect the correct amount.
- If the statement from the bank has a transaction that is not on the report in QuickBooks Online, check the register for the transaction.
- If you find the transaction, place a letter R on it and save it.
- If you did not find the transaction, add it to the register with a letter R, and save it.
If the total of the adjustments equals the amount of the outstanding historical transactions, you can delete the adjustments and manually reconcile the historical transactions in the register.
To manually reconcile a transaction, select Edit from the register and add the letter R in the check mark column.
If the transactions are all correctly check marked and the ending balance is correct, then the opening balance must be incorrect. If this is the case, see My reconcile opening balance is wrong. How do I make it match my statement?.
Accounts connected to online banking
Accounts connected to online banking have additional features to assist with reconciliation.
- The Cleared Date column, that specifies the date the transaction cleared the bank (supplied by your bank). If the account is currently connected to online banking but the transaction did not originate from the bank, or have a match from the bank, it will not have a date within the Cleared Date column.
- Automatic alerts for transaction date and transaction cleared date discrepancies. These alerts are helpful when:
- A transaction with a manually entered transaction date within the statement period cleared after the statement end date. These transactions are automatically unchecked.
- A transaction with a manually entered transaction date after the statement period cleared before the statement end date. The problem transaction is hidden from view because it is dated after the statement end date, but you are alerted to Show Hidden Transaction.