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Fix issues the first time you reconcile an account in QuickBooks Online

by Intuit716 Updated a day ago

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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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.

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  1. Find the account on the list.
  2. Select View Register.
  3. Search for the opening balance entry. It should have Opening balance equity in the Account column.
  4. 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.

  1. Sign in to your bank's website, or find your bank or credit card statement.
  2. Check the account's balance for the same day as the opening balance in QuickBooks.
  3. Compare the two balances.
  4. If the balances match
    • You entered the opening balance correctly. Move on to Step 3.
  5. 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:

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  1. Find the account on the list.
  2. Select View register to get more details.
  3. 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.
  4. 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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