I tried to change the bank account for payroll direct deposits. QB shows my payroll came out of one bank account, but it actually came out of another. What do I do?

Since the payroll checks are shown in QB as being in " Bank Acct A" when in reality they were withdrawn from "Bank Acct B", how do I reconcile them?

Hello, TPDZ. 

I'm happy to show you the steps you need to take to reconcile your payroll checks from "Bank account A" to "Bank account B." Follow along down below. 

Here's How:

1. In QuickBooks Online, select Settings ⚙ and then select Reconcile. If you're reconciling for the first time, select Get Started first and then Let's do it.
2. From the Account ▼ drop-down menu, select the account you want to reconcile. Make sure it's the same one on your statement.
3. Check the Last statement ending date. Make sure your bank statement starts the day after your last reconciliation.
4. Review the Beginning balance. Make sure the beginning balance in QuickBooks matches the one on your bank statement. Here’s what to do if they don't match.
5. Enter the Ending balance and Ending date as they're written on your bank statement. Some banks call the ending balance a "new balance."
6. When you're ready to start, select Start reconciling.

I'm also including a few helpful articles. The first highlights the steps above, as well as breaking down the process in more detail. I highly recommend checking it out. The second article explains what a reconciliation is, with a instructional video. 

- Reconcile an account in QuickBooks Online

- What's a reconciliation?

If you need further assistance with anything, feel free to post down below. 

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Just got off the phone with QBO, are you kidding me all the paycheques have to be corrected individually thru a journal entry? So you change the company payroll account, QBO runs a small amount of $$ thru the new account to ensure all is well BUT neglects to tell you that there is a 2nd step to ensure when you are reconciling your accounts that the entry reflects the correct account. So now, instead of being able to quickly redirect the issued paycheque to reflect the new and correct account, I now have to manually correct.
What a waste of my time. FIX THIS ISSUE Quickbooks!!

Quickbooks has the ability to change accounts and transfer payments for everything except payroll checks. What a failure in their system! We've been requesting this fix for months and all they offer is a cumbersome ledger transfer. Stupid. The money came out of the correct account when the checks were cashed yet they can't be reconciled because QB has them tied to the other checking account. This issue is so frustrating we are investigation other book keeping and payroll software. 

I have the same problem. My payroll for the entire month of July were withdrawn on Bank A. August 1st, I changed to Bank B. 

I am able to reconicle all transactions on Bank B. However, transactions on Bank A did not go to Bank A, but followed Bank B. Now I have tons of checks and IRS and EDD payments under Bank B. That means my Bank B is overdrawn.

Now I went back to those transactions and click Edit to change them all to Bank A, Stupid QBO won't allow me. Why? 

All those transactions under Bank A were withdrawn under Bank A in july. Because I changed to Bank B, those transactions changed to Bank B. Is QBO stupid or what!! 

Someone miscalulated the configuration for QBO. Since I changed to QBO, all i have to deal with are stupidity errors. I used desktop before and had not run into such problem.

So what I should do now?

1. delete those transactions and re-eter them one by one under Bank A. They were w/d from Bank A to begin with. It was when I change direct deposit to Bank B, all those transactions from Bank A followed to Bank B. Insane!

2. Will they mess up all my liabities ?

3. Now I go back to reconcile Bank A, I can't find those transactions as they are all in Bank B. I did not put them in Bank B. QBO put them in Bank B because QBO could not configure to have them corrected .

QBO, can you get your act together?

What a shame!

Hi there, Allisont.

I'll provide information and steps so you're able to reconcile your transactions with the correct bank account.

Updating the payroll set up and ensuring that the correct account is changed will normally post the transaction to the new account. Since the process is successful on your end but the transactions from the previous payroll account were included to the new one, I'd recommend creating a journal entry to transfer the transactions to another account. This is to avoid mess up all your liabilities and to make your account stays accurate. I'd also suggest consulting an accountant before performing the process. They can provide suggestions on how to properly handle the account, especially with the category to use for the debit and credit.

On your other concern, you're unable to edit the entries that already processed in QuickBooks. That's the reason the system won't allow you to perform this.

I've also attached some articles below about tips and guide to reconciling an account: 

• Reconcile
• Year-end reconciliation

Let me know if you have any other questions. Simply click the Reply button below to add a post. Have a wonderful day.

Agreed! Super frustrating! And inefficient, plus not very clean. Looks unprofessional.  Quickbooks Desktop you can easily Edit the bank account. Imagine having to create a journal entry for several checks. This is ridiculous. Or if your switching accounts so there are checking coming out of old payroll account and new account. And I called and wasn't able to get it corrected.

So, I may have found an awesome solution to this!  Change the bank account name that QBO created for the payroll checks to come out of and name that checking account the same name as the one you want them to come out of and Viola, they merge and the world is right again.

I'm having a similar problem.  I changed the bank account for my payroll direct deposits.  Everything is working fine for the payroll part but the taxes keep showing as pulling from the old account even though they are actually pulling from the new account.  How do I change in QBO where the taxes should be pulling from? 

Thank you.

Thanks for joining this thread, bookkeeping61.

I understand that you need to post the taxes to the correct account. I'm here to lend a hand.

To update your payroll bank account, you also need to update it from the Payroll settings to correct the posting and payroll entries. 

Here's how:

1. Go to the Gear icon and select Payroll settings.
2. Select Accounting, then change the bank account.
3. Click Done.

For those transactions that are posted to the incorrect account, you may create a journal entry but make sure to consult with your accountant first before doing the process to ensure your books are up-to-date.

I added an article you can check if you need to run payroll-related reports: Run payroll reports.

It's always my pleasure to help if you have additional payroll concerns or any other questions.

I've changed the bank account in my preferences and on my payroll screen.  The money IS coming out of the correct account but I'm getting a message about insufficient funds in the old account every time I run a payroll.

Thanks for any help

Sally

PCW, Inc.

Hi there, @Sally591. I'm here to assist you in resolving the error you're experiencing.

Apart from the preferences and the payroll screen, ensure you've also updated the bank account information in the direct deposit settings. Here's how:

1. Go to the Gear icon and then Payroll Settings.
2. From Bank Accounts, select Edit.
3. Click Update.
4. Select Add new bank account.
5. Search your bank name. You may be asked to enter your online banking user ID and password. Otherwise, select Enter bank info manually. Enter your routing and account number, then select Save.
6. Select Accept and Submit.

If you're still getting the same message, you may have accumulated too much historical data. Whenever you visit a website, it saves some information from the web page in its cache and cookies. These files allow the websites you visit most often to load faster. Not to worry, clearing them will do the trick.

First, let's try accessing your account through an incognito window to rule out the possibility of a webpage issue. You can refer to these shortcut keys to open an incognito window in all supported browsers:

• Chrome: Ctrl + Shift + N
• Firefox: Ctrl + Shift + P
• Safari: Command + Shift + N

If it works, switch back to your regular browser. Then, clear its cache. This way, you can access QuickBooks with a clean slate. You can also use a different supported one.

I also suggest visiting this article for more insights about the variety of hold types: NSF hold.

Visit us again if you need further assistance with managing payroll. It's our pleasure to help you. Have a pleasant day!