cancel
Showing results for 
Search instead for 
Did you mean: 
userbecky1
Level 1

I am a new QBO user trying to reconcile for the first time. Beginning balance on bank statement is different than what QBO says.How do I do a journal entry to fix?

My QBO beginning balance on 1/1/21 is $1321.13 higher than what my bank statement beginning balance lists. I've watched many videos, but none quite address this issue specifcally. I spent nearly TWO HOURS on chat yesterday w/a QBO customer service person. They had me do many confusing things and could not resolve the discrepancy or teach me how to do it myself. Anyone here able to help me w/how to do a journal entry to get beginning balances to match? At wits end and ready to go back to desktop version or find new accounting software....
4 Comments 4
vpcontroller
Level 11

I am a new QBO user trying to reconcile for the first time. Beginning balance on bank statement is different than what QBO says.How do I do a journal entry to fix?

 

Let us say for this example per the bank statement, the ending balance on 12/31/2020 (ie also beginning balance on 1/1/2021) is $10,000. And on the QuickBooks register, the balance shows $11,321.13 for the same.

 

Usually, all you've to do is to write a journal entry (Left dashboard > + New > Other > Journal Entry)

  • Posting date: 12/31/2020
  • Debit Retained Earnings = $1,,321.13 
  • Credit Bank account = $1,312.13

 

Next, the reconcile bank register on 12/31/2020. Make sure the difference is ZERO. The beginning balance on 1/1/2021 per your bank statement should match with the QBO register now. 

 

Always, consult with your CPA /Accountant for further guidance.

 

Hope this helps!

 

userbecky1
Level 1

I am a new QBO user trying to reconcile for the first time. Beginning balance on bank statement is different than what QBO says.How do I do a journal entry to fix?

Thank so much for your straightforward answer.  It made a lot more sense than the super confusing (and ultimately unsuccessful ) suggestios by the QBO support person. Unfortunately, your solution didn't work, either (and it really seemed like it should have!).  Beginning checking account balance is showing exactly the same amount in QBO as it did before the debit/credit journal entry correction. Sigh......

I think it's time for me to throw in the towel and go back to desktop version.


Thank again for trying to help.

 

Becky

vpcontroller
Level 11

I am a new QBO user trying to reconcile for the first time. Beginning balance on bank statement is different than what QBO says.How do I do a journal entry to fix?

Wait, normally it should have worked.

There be other reasons as well. Check to see if you have an entry posted to the "Opening Balance Equity" account related to that bank account after the 1/1/2021 date. You can check this from the Opening Balance Equity (OBE) account from the Register.

(Left dashboard > Chart of Accounts > Go to 'Opening Balance Equity' account under Register > Click View Register). If you have an entry related to the bank account in question, you will need to click edit and change the change prior to the 1/1/2021 or 12/31/2020 date. Hope you will give it a try.

 

Note: QBO is a far better product than the Desktop especially if you want to use the Banking tab features.

userbecky1
Level 1

I am a new QBO user trying to reconcile for the first time. Beginning balance on bank statement is different than what QBO says.How do I do a journal entry to fix?

THanks for your continued help on this ;-).  I'll give your suggestion a try.

One thing I should note -- in your original answer, you wrote : "Next, the reconcile bank register on 12/31/2020."

I didn't quite understand what you wrote there, and wonder if there is a typo in that sentence.  I realize now because I didn't understand it, I skipped that part (I did get the journal entry part done, though!).

COuld that be why it didn't work --there was another step I had to do?

Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us