Learn what to review so you can start reconciling.
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.
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 if and what you need to change. Here's how to fix beginning balance issues so you can start reconciling.
|Tip: If you've never reconciled this account before, don't follow these steps. Here's what to review for the first time you reconcile an account. Or, if you're new to the entire process, start with our reconciliation guide.|
Step 1: Review the original opening balance
The opening balance is the starting point for accounts in QuickBooks. If it’s incorrect, it affects all following reconciliations.
Make sure your opening balance is correct before checking your beginning balance. Then move on to Step 2.
Step 2: Check your bank statement
Make sure you're reconciling the correct account for the correct month:
- In QuickBooks, go to Bookkeeping and select Reconcile (Take me there).
- Review the account you selected in the Account dropdown menu.
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.
Step 3: Match and categorise downloaded transactions
If your account is connected to online banking, match and categorise all of your downloaded transactions before you start reconciling. You need to categorise everything to get your final correct beginning balance.
Step 4: Review any discrepancy reports
If anyone makes a change that affects your beginning balance, you'll get a message before you start reconciling.
- 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.
Once you know you need to make corrections, review each transaction on 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 $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.
Next steps: Start reconciling
If you’ve followed everything in our reconcile guide but still have questions, connect with your accountant. They can help get back on track.