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Fix issues the first time you reconcile an account in QuickBooks Online
If you're reconciling an account for the first time in QuickBooks Online and the balance is wrong, it’s often due to an incorrect opening balance. The opening balance is the starting point for your account in QuickBooks. When you first connect to a bank or credit card account, QuickBooks sets the opening balance using the real-world account balance from the day you choose to start tracking transactions.
This guide walks you through how to review, compare, and correct the opening balance so you can start reconciling your account.
Tip: If the account was already reconciled, here’s a different list of things to review. If you're new to the reconciling process, learn the reconcile workflow.
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Video transcript
[0:00] Hi, this is Jason from the QuickBooks team. If you start reconciling an account in QuickBooks for the first time... and notice that your beginning balance in QuickBooks doesn’t match the balance you have in your bank statement, then you’ll need to change it. Let’s go over how to fix this issue so you can start reconciling.
[0:17] To start, go to Settings and Reconcile and select the account you want to reconcile. If this beginning balance doesn’t match your bank statement then select Bank Register. Select the filter button. Then change Reconcile Status to Reconciled. And select Apply. The beginning balance in the reconciliation screen is the sum of all the transactions you see with an “R” in this column.
[0:48] If the beginning balance didn’t match your statement, and you only see one transaction here, select it… …change the dollar amount and date to match the beginning balance on your statement. Then save. And select Yes. If you don’t see anything at all, select the drop down arrow to enter a new transaction.
[1:13] To set up a beginning balance for a credit card, you’ll usually enter it as a credit card expense… or if you’re setting up a beginning balance for a bank account, select Deposit. Then enter the date that the statement begins on… …the amount of the beginning balance or previous balance on the statement… …and in this menu, select Opening Balance Equity. Then select this box until it reads, “R”.
[1:40] Finally, Save the transaction. If you filtered your register and found multiple transactions with an “R” in this column... ...you, or someone else on your team, may have reconciled this account sometime in the past. Check out this video on how to undo reconciliations and deal with other common reconciliation problems. After you’ve corrected, or set up your beginning balance, select Reconcile.
[2:06] Select the account again… …and your beginning balance should now match what you see on your bank or credit card statement. Then enter the ending or new balance that you see on your statement. And the ending date you see on your statement. Then select Start Reconciling. If you want to see how to Reconcile an account in QuickBooks this video will show you how.
[2:30] Be sure to come back to the Reconciliation screen any time you receive a statement from your bank or credit card provider. Now you are ready to reconcile your account.
Correct an opening balance for a first reconciliation
Follow these steps to find and fix the opening balance for the account you need to reconcile.
Prerequisites
A copy of your bank or credit card statement for the period you are trying to reconcile.
Access to the Chart of Accounts in QuickBooks Online.
Note: If you recently entered older transactions dated before your opening balance, here's how to reconcile them. Then continue with these steps.
Step 1: Review the opening balance in QuickBooks
The opening balance is recorded as a journal entry in your account's register.
Go to All apps
, then Accounting, then Chart of accounts (Take me there).Find the account on the list.
Select View Register.
Search for the opening balance entry. It should have Opening balance equity in the Account column.
Take note of the date and balance.
Note: If you forgot to enter an opening balance, here's how to manually enter an opening balance later.
Step 2: Compare the opening balance with your real-life account
Once you have found the opening balance entry, compare it to your bank or credit card statement.
Sign in to your bank's website, or find your bank or credit card statement.
Check the account's balance for the same day as the opening balance in QuickBooks.
Compare the two balances.
If the balances match
You entered the opening balance correctly. Move on to Step 3.
If your balance doesn't match your bank records, correct it:
In QuickBooks, select the Opening balance equity entry to expand the view.
In the Deposit column, edit the balance so it matches your bank records.
Select Save.
Step 3: Review your account register
When you reconcile an account for the first time, the opening balance is the only entry that is reconciled. No other transactions should be reconciled. To check:
Go to All apps
, then Accounting, then Chart of accounts (Take me there).Find the account on the list.
Select View register to get more details.
Search for the opening balance entry.
It should have Opening Balance Equity in the Account column.
In the checkmark column, there should be an R.
Check the other transactions.
The checkmark column should either be blank or have a C.
If there's an R on any other transaction, select the transaction to expand the view. To help find your transactions, you can sort and filter transactions with an R status.
Select the box in the checkmark column. Keep selecting it until the box is blank. Then select Save.
After updating the opening balance, the beginning balance in your reconciliation screen should now match your bank statement. You can now proceed with your account reconciliation.
Next steps
Once you know your opening balance is correct, you can start reconciling. If you see a message about an incorrect beginning balance when you start, here are other things you can review.
If you’ve followed everything in our reconciliation guide but still have questions, connect with your bookkeeper.
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