I'm doing my first reconciliation in any QuickBooks product. Before I came to the job, no reconciliations had been done, although bank transactions have been downloaded all along. I'm trying to start with January 2020, and was told by Larra that I needed to put in the opening balance from the January statement and just start reconciling from there. My January statement shows 28 debits and 3 credits; QBO reconciliation shows 607 payments and 61 deposits. I have a difference of -$1,502.23 and I don't know where to look since I've matched up all the transactions (except one A/R transaction where the money was not in the bank until the following month).
I figure it must be looking at all of the transactions YTD, i.e. after January.
What do I do? This is not making sense to me.
Not to worry, I'm here to make sure your account matches your bank statement, @GF2020.
When it's your first time reconciling your account, and you want to start with January 2020, you'll have to enter the ending balance from your bank statement. These instructions below will help you edit the information:
If there's still a difference, check out our guide on fixing reconciliation issues and proceed to Step 3.
Once done, you can run the Reconciliation Report that summarizes that beginning and ending balances. It also lists which transactions were cleared and which were left uncleared when you reconciled.
To learn more about the reconciliation workflow in QuickBooks, you can refer to the articles below. It contains complete information to keep your accounts accurate:
Visit me here again in the Community and keep me posted on your progress with this bank reconciliation issue. I'm determined to help you succeed.
Thanks for replying. I have some questions.
1. My understanding was that before starting the reconciliation I needed to make a journal entry to put in the opening balance from the January 2020 statement. I did that. Should I not have done that? Do I need to reverse that journal entry?
2. Should I not have put in any amount in the beginning balance field when I started the reconciliation? I put the opening balance from the January statement there, too. When I go back into my reconciliation and click Edit Info, I can't edit the beginning balance. Do I need to start this reconciliation over again with different amounts in the bank information fields? If so, how do I get rid of this reconciliation?
Can anybody help me? I read the response to my original post but I have since replied with some follow-up questions. I'm unable to proceed without more information.
Thanks in advance.
Hello there, @GF2020.
Let me share some information to help you complete the reconciliation of your account.
When reconciling your account, it is to make sure that the actual money spent or earned matches the money leaving or entering an account at the end of the fiscal year. Also, you can make sure that all information in your financial reports is accurate and valid.
There would be a need to access your account and review your accounting set-up. Since the Community is a public forum, I'd recommend consulting with an accountant. He or she can appropriately assist you in deciding whether you'd reverse the journal entry you've created.
You can either request a free consultation with one of our online bookkeeper who understands your business. Also, you can search for a QuickBooks-certified independent accounting professional who can guide you in accurately recording your account's beginning balance.
Let me how your consultation goes by leaving a comment below. Wishing you continued success!
Thanks for checking some updates in this conversation, @M-A-S. I understand you also need help in fixing the same issue.
You'll want to follow the steps shared by my peer @LieraMarie_A above. If you're still having trouble matching your transactions in the reconciliation, I'd recommend you consult an accountant as suggested by @IamjuViel in this thread.
For future reference, read through this article to learn more about some helpful steps to fix issues during a reconciliation in QuickBooks Online.
Don't hesitate to get back here if you need to add more details on your concern, @M-A-S. We're glad to help you some more.
So. . . nobody on the QuickBooks team can tell me if I was supposed to enter an opening balance journal entry or not. I just want to know if I did the right things in preparation for the reconciliation.