Bank Reconciliation

LongBeard · ‎October 06, 2021

Am a novice here, so bear with me please.

Affiliated with a non-profit and just finished entering 4 years worth of data so we can file back taxes and hopefully get our 501(c)(3) back. I have been reconciling the bank account for every month. My use of QB is fairly straight forward (cash basis) and have only one inventoried item we sell, a ceramic mug.

At the beginning of this 4 years (2017), we purchased 300 of said mugs for $840.53 and we wrote a check. Not knowing any better, I entered said item into inventory with a starting qty of 300, without any connection to the check we wrote.

Now, I am finishing up the 4 years of data, and have a better (not good) understanding of how inventory works within QB. So, in my ignorance, I deleted the check I wrote 4 years ago, entered a bill for the mugs, along with qty and price/mug and re-entered the old check number to pay the bill. I manually reconciled that particular check assuming that was the correct thing to do.

Now I try to reconcile Sept 2021, and my beginning balance does not match my bank statement. It is off exactly $840.53. Obviously I don't understand what I did wrong.

Question: Do I want to just enter the correct opening balance in my reconciliation, or is there a way to fix what I have done? I would prefer the fix method, but I might have entered a black hole.

MichelleBh · ‎October 06, 2021

I'll be here to assist you every step of the way to fix your opening balance in QuickBooks, @LongBeard.

Thank you for providing the complete details of your concern. I'll walk you through how to troubleshoot your incorrect opening balance in QuickBooks Desktop. This way, you can finish the reconciliation in no time.

The possible reason the balance is incorrect is that the check you created was not included in the reconciliation report as it was performed manually. To correct this, I recommend that you delete and recreate the check. After that, make a mini reconciliation to include the unreconciled transaction in your account.

Here's how:

Go to the Banking menu, then choose Reconcile.
Pick the exact Statement date in the box.
In the Ending Balance field, enter the balance of your last successful reconciliation.
Complete the required details and click Continue.
Check off the transactions you are fixing and re-reconciling.
You can also click the Modify button on the bottom part to correct the balance.
Tap Reconcile Now.

For more details, check out this article: Reconcile previously deleted and re-entered checking or credit card transactions.

In addition, see these links below for more ways to correct the wrong balance and other related topics:

Remember that you can always ask me about any topics or other processes within QuickBooks. Keep safe, @LongBeard.

View solution in original post

MichelleBh · ‎October 06, 2021

I'll be here to assist you every step of the way to fix your opening balance in QuickBooks, @LongBeard.

Thank you for providing the complete details of your concern. I'll walk you through how to troubleshoot your incorrect opening balance in QuickBooks Desktop. This way, you can finish the reconciliation in no time.

The possible reason the balance is incorrect is that the check you created was not included in the reconciliation report as it was performed manually. To correct this, I recommend that you delete and recreate the check. After that, make a mini reconciliation to include the unreconciled transaction in your account.

Here's how:

Go to the Banking menu, then choose Reconcile.
Pick the exact Statement date in the box.
In the Ending Balance field, enter the balance of your last successful reconciliation.
Complete the required details and click Continue.
Check off the transactions you are fixing and re-reconciling.
You can also click the Modify button on the bottom part to correct the balance.
Tap Reconcile Now.

For more details, check out this article: Reconcile previously deleted and re-entered checking or credit card transactions.

In addition, see these links below for more ways to correct the wrong balance and other related topics:

Remember that you can always ask me about any topics or other processes within QuickBooks. Keep safe, @LongBeard.

LongBeard · ‎October 08, 2021

MichelleBh,

So sorry for the delay in getting back to you.

I applied your fix, per your instructions, and if worked perfectly. Thank You for your assistance. If you could see me right now, I am doing my happy dance.

I do however have one additional question you may or may not be able answer, since it is not a QB question. Where does one file this mini reconciliation? With the September 2021 bank file or with the 2017 monthly file that the check was originally reconciled, or both? I am making sure that the poor sap that follows in my footsteps has some clue to what I am doing ... and I would be confused if I saw a Sept 2021 reconciliation not affiliated with a bank statement reconciling a check written in 2017. Or does the hefty note I attach to the mini reconciliation solve all problems and the mini reconciliation can be filed wherever without confusion?

Sincerely, LongBeard

DebSheenD · ‎October 08, 2021

Hello there, LongBeard.

I'm here to share some details about the mini reconciliation process. To fix the beginning balance in QuickBooks Desktop, I suggest using the specific date when the discrepancy started, which is September 2017. Ensure that transactions in the QuickBooks account match your bank statement.

However, I'd suggest consulting an accountant. Since previous and current reconciliations are impacted by changes.

Additionally, I've included these helpful articles for the troubleshooting steps in case you'll bump into issues while working with your bank transactions and how to reconcile your account:

If you have any concerns or questions matching your bank balance and QuickBooks balance, tag me in your reply. I’ll be around to help and back you up. Have a good one and keep safe!

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