Changing Deposits to General Journal Entries has messed up my Bank Balance for Reconciliation

Hi there,

Reconciliation can be a time-consuming process but don't worry, QuickBooks is designed to bring simplicity to your work. I'll be happy to share more info about fixing a discrepancy on your beginning balance. 

The beginning balance can be affected by any of the following variables: 

• No balance or an incorrect balance was entered when the account was set up.
• Previously cleared and reconciled transactions were voided, deleted, or modified.
• The file was converted from a different version of QuickBooks.
• Possible data damage.

To fix beginning balance in QuickBooks Desktop, follow the steps outlined in this article here. I also encourage you to check out this insightful article with more about reconciling in QuickBooks.

Give this a try and if you need further assistance, don't hesitate to reach out to our support team using this link. Otherwise, feel free to reach out if you need anything. I got your back.

Hi JamesM,

Many thanks for your reply. The article that you provided is very helpful. It allowed me to understand why my Reconciliation Beginning Balance has changed.  I am hoping that you could provide specific advice as to how I should fix the problem.

In summary, for the first number of months I entered Deposits into my business general account which were not 'deposits' at all, but transfers of funds from my personal account and funds loaned by the bank.  Despite this, I reconciled my general account each month and all was good.

However, when I started preparing my data to give to my accountant for Financial Statements preparation, I went back and deleted these specific 'deposits' and created General Journal Entries instead, showing the tranfer of funds between Accounts.  Was I wrong to use GJE's for these transactions? Should I have used Transfer between Accounts instead? 

And this is the first time that I am trying to Reconcile my Bank Account since deleting the Deposits and adding the General Journal Entries; so I've now noticed that my (apparent) Bank Balance (at the end of the last reconciliation) is no longer accurate to what's actually in the Quickbooks account. It's been affected by the deletion of all of the deposits that I switched to GJE's.

So... how do I fix the discrpency? Do I remove the GJE's and replace them with Transfers between Accounts? Or do I make a "one time Quickbooks adjustment" as indicated in the article that you provided?

Thanks, in advance, for your guidance :)

I'm glad you found the articles helpful. I want to make sure your transactions are recorded the best way possible. To ensure accuracy, I suggest reaching out to your accountant for expert advice on this. I'll also leave this question open to the community so other members can chime in and share they're perspectives. Depending on which method you choose, I'll be happy to show you how to accomplish that using the program. Let me know if you have questions.

Thanks again JamesM.

I've reached out to my Accountant and will let you know how I'm advised to proceed.

Take care.

Sounds good. I'll be one message away in case you need anything else. 

I'm happy you were able to get to the bottom of this with your accountant. Thanks for sharing how you were able to resolve this. If you have other questions, don't hesitate to reach, I'll be on standby.