Reconciling a 12 year old account, I need to adjust the beginning balance, so that it matches my bank statement.

Did you convert data from QB Desktop?

Hi, Deanna. To adjust the beginning balance for a reconciliation,  locate the opening balance equity transaction that was created during account setup, or identify any discrepancies from prior reconciliations.

The reconciled beginning balance is the sum of all transactions marked as R (reconciled) that occurred before the start date.

If the client doesn't want you to reconcile back 12 years, you'll need to create a journal entry (JE) to adjust the bank account balance to match the actual bank statement balance on that date:

1. Click +Create, then Journal entry.
2. Set the date to 12/31/2024.
3. On line 1, choose the appropriate bank account (debit or credit) based on the transaction's direction.
4. Opening Balance Equity (or Historical Adjustments) for line 2.
5. Save and close after.

The JE would debit or credit the bank account (depending on whether you need to increase or decrease it) and offset to an equity account (Opening Balance Equity or Historical Adjustments).

Then, mark this JE with an R in the register so it's included in the beginning balance when you start your January 2025 reconciliation.

Here's how:

1. Navigate to the Gear icon and choose Chart of Accounts.
2. Locate the bank account and click View Register.
3. Find the 12/31/2024 Journal Entry you created.
4. Click the checkmark column (between Deposit and Balance) until it displays a bold R.
   
   
5. Hit Save.

             Note: Marking the entry as reconciled will ensure that it appears in your Beginning Balance for January.

The old unmatched deposits and payments might still be in your bank register or bank feed. You can exclude them if they're duplicates, or delete from the register if they're truly not needed:

1. In the same Register, look for old unmatched transactions from 2024 or earlier.
2. If they are duplicates, select the transaction, then delete it.
3. In the Bank Feed (Banking Tab), go to the Pending tab.
   
   
4. Select any ancient transactions that don't belong.
5. Choose exclude instead of delete to avoid having QBO redownload them.

However, if they represent real discrepancies (e.g., payments never deposited), the JE above should account for that difference.

Once done, start the January reconciliation:

1. Go to the Gear icon, then Reconcile.
2. Verify the Beginning balance matches the 12/31/2024 statement.
3. Please provide the ending balance and date from the January 2025 statement.
4. Match your January transactions until the difference is $0.00.

I've also added some helpful articles for your reference :

• Reconcile an account in QuickBooks Online
• Fix issues the first time you reconcile an account in QuickBooks Online
• Fix issues with your beginning balance for accounts you've reconciled before

I recommend doing monthly reconciliations, promptly reviewing differences, keeping documentation for adjustments, using journal entries only when justified, reclassifying Opening Balance Equity as you tidy balances, and maintaining an auditable trail for traceability.

Give these steps a try and let me know how it goes. If you run into any issues, please leave a comment below.

Good day, Deanna.

I just wanted to follow up to check if the resolution we provided helped resolve your issue.

Please let us know if everything is now working as expected or if you’re still experiencing any problems.

We’ll be glad to assist further if needed.

@DeannaAEM 

Making an adjustment to allow you to start reconciling 2025 is a band-aid, but if you still want to do it, reconcile through 12-31-24 using the 1-1-25 beginning bank statement balance as the 12-31-24 QB ending balance.  When you reconcile through 12-31-24, you will need to make an adjusting entry dated 12-31-24 to get the bank account balance in QB to match the 12-31-24 bank statement.  Assign that payment/deposit to a 'Reconciliation Discrepancy' expense account.  Your client's CPA/tax accountant may need to make further adjustments depending...  

Im sorry, I've been locked out! I finally got in! I did get it fixed.  I reconciled the first month 1/1/2025 , then made my adjustment. It worked fine. Thanks everyone for your help!