Adjustment of Ledger and Bank Statement Balance Difference

Jawad Kayani · ‎March 03, 2023

Hi Everyone

I joined a new company a few months ago, and we use two software programs QuickBooks Online and MS Dynamics GP. The problem is that all bank ledger balances do not match bank statements. The difference is not new; it has existed for more than a year. Many of our colleagues left the organization and many newcomers have joined the company.

I am looking for a shortcut solution to the adjustment balance difference. We can't reconcile because this will disrupt everything in our accounting software.

Kindly guide me on how I can adjust the difference. I have ideas like adjusting our ledger balance with expenses through a journal entry creating a new account and adjusting the balance or adjusting the balance against owner equity. I am looking for suggestions.

Kind Regards

Rainflurry · ‎March 03, 2023

@Jawad Kayani

This may seem basic but, if you're not reconciling, how do you know your ledger balances don't match your bank statements? Your ledger balance, as of your bank statement date, includes many uncleared transactions so your ledger will not match your bank statements. Are you adjusting for these uncleared transactions?

Jawad Kayani · ‎March 06, 2023

Bank are reconciled even since my joining in December 2022. I reconciled the banks the problem is that the opening balance does not add up. This is coming from one year or even more than one year. Our former colleagues made the necessary adjustments for reconciliation purposes and other purposes and meanwhile they left the organization. I am looking for a solution to the only open balance. Our bank accounts are reconciled.

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Adjustment of Ledger and Bank Statement Balance Difference

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