
Fix issues with your beginning balance for accounts you've reconciled before
by Intuit•26• Updated 1 week ago
Each time you start reconciling an account, you review the beginning balance in QuickBooks. It's the amount in the account at the beginning of the time period you're reviewing. Think of it as a checkpoint. It lets you know if you're starting with accurate numbers.
If the beginning balance doesn’t match, QuickBooks can help you find and fix the issues.
Learn what causes beginning balance issues
- Entered an incorrect opening balance when they created the account in QuickBooks.
- Added transactions that are older than the opening balance, but didn't edit the original opening balance entry to reflect the change.
- Edited, deleted, moved, or unreconciled an already reconciled transaction. This changes the ending balance of your last reconciliation, which impacts the beginning balance of the next one.
- Manually reconciled a transaction, so it didn't show up on the next reconciliation.
Troubleshooting Tips:
- If you've never reconciled this account before, don't follow these steps. Here's what to do the first time.
- If you're new to the entire process, start with our guide.
The beginning balance amount should match what's on your bank statement for the same start day. If it doesn't, don’t worry. QuickBooks lets you know what changes you might need to make. Here's how to fix beginning balance issues so you can start reconciling.
Prerequisites
- Access to the account’s bank statements.
- Admin rights to view and edit reconciliations in QuickBooks Online.
- Awareness of any changes recently made to transactions (edits, deletions, manual reconciliations).
Find the Issues
- Gather bank statements for the bank and date range you want to reconcile.
- Access the Bank Transactions section in QuickBooks Online, and ensure that all transactions from that period have been matched, categorised, posted, or excluded.
- Select Reconcile either in the Accounting section or in Settings.
- Choose the account you wish to reconcile from the Which account do you want to Reconcile ▼ dropdown.
- Note: If you have multiple accounts at the same bank, or more than one account of the same type, make sure you're reconciling the right one.
- If the Beginning Balance doesn't match the ending balance of the last reconcile, there will be an alert that reads "Your account isn't ready to reconcile yet. Your beginning balance is off by..."
- Note: for accounts connected to online banking, match and categorise all downloaded transactions.
- Select the link in the alert that reads, "We can help you fix it." This opens the Reconcile Discrepancy Report and lets you begin researching.
- Follow this link to complete the steps in product.
- Select the account that you want to reconcile from the Account ▼ dropdown.
- 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.
- Before editing anything, talk with whoever made the changes - they may be intentional.
Note: If you moved from another software to QuickBooks Online, you might see a blank discrepancy report. You can check for discrepancies in the audit log of your previous software.
Fix the Issue
Get a QuickBooks-certified bookkeeper to help you categorise transactions and reconcile your bank statements every month. Learn more about QuickBooks Live Bookkeeping.
Review each transaction in the report one at a time.
- Select View to see the history of changes to the transaction.
- Review the Change Type column. This tells you what changed.
- Make edits based on the message in the Change Type column:
After you review everything on the discrepancy report, the Total Discrepancy Difference on the report should be GBP £0.00. Check the beginning balance again in QuickBooks. It should match the beginning balance on your bank statement. Select resume reconciling to continue reconciling.
Results
After fixing all issues, the Total Discrepancy Difference should show $0.00. The beginning balance in QuickBooks will match your account statement, allowing you to resume reconciliation.
Next steps
- Once you know your beginning balance is correct, you can start reconciling. If you see issues in the middle, here's what you should review.
- If you’ve followed everything in our guide but still have questions, connect with your accountant. They can help you get back on track.
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