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Fix beginning balance issues when reconciling in QuickBooks Online

by Intuit •

1031 •

Updated 9/1/2026 04:34

Learn how to find and fix beginning balance issues on an account you've reconciled before.

Each time you reconcile an account, you'll check the beginning balance first. It should match the ending balance of your last reconciliation. If it doesn't, QuickBooks won't let you continue until you account for the difference.

Most of the work happens in the Reconcile Discrepancy Report. This report lists what changed, how it affected your balance, and what you can do to fix each item.

If you've never reconciled this account before, the cause is usually the opening balance rather than a changed transaction. Compare the opening balance entry to your bank statement from the day before you started tracking the account in QuickBooks. To view or edit it, refer to: Enter and manage opening balances in QuickBooks Online. Ask your accountant if you're unsure about correcting it.

Get personalized help fixing beginning balance issues with Intuit Experts.

Video transcript

[0:00] When you reconcile an account, you might see an alert saying your account isn't ready to reconcile yet. That means your beginning balance is off. Let's go over how to fix it using the discrepancy report. We'll cover why beginning balances change, how to read the report, and how to fix each kind of change. Your beginning balance is where each reconciliation starts.

[0:19] It should match the ending balance of your last reconciliation, and your bank statement. When you reconcile, each transaction is locked in with a reconciled status in your register. If someone changes or deletes one of those transactions later, your beginning balance goes off. If this is your first reconciliation, check out our video on entering your beginning balance instead.

[0:39] You may need to enter or adjust a beginning balance journal entry. To start, go to Settings, then select Reconcile. If your beginning balance is off, you'll see an alert here. Select the link in the alert to open your discrepancy report. A banner at the top explains what you're looking at and links to related help articles. You'll also see your total difference.

[0:59] That's how far off your beginning balance is, and your goal is to get it to $0. Each row is one reconciled transaction that changed. The What happened column tells you who made the change, what they changed, and when. You'll also see the amount at your last reconciliation, the amount now, and the difference that transaction is causing.

[1:19] The register status column shows R for reconciled, C for cleared but not reconciled, or blank for neither. Keep in mind that the fixes here are suggestions. If a change looks like a mistake, apply the fix. If you're not sure, select View history to check the audit log and compare against your bank statement first. Most changes are one-click fixes right in the tray.

[1:41] Select Review in tray and QuickBooks pre-fills the original details. If the original is correct, select Save. If the change was intentional, select Edit to open the full transaction and reconcile it there. If someone voided a reconciled transaction, you'll see voided transaction. Select Review in tray to see the original amount already filled in. Select reverse void to restore the transaction.

[2:05] If the void was intentional, adjust the register status and save instead. The tray handles register changes too. If a reconciliation status was changed by mistake, QuickBooks pre-fills the original. Select Save. Even a deleted expense can come back. Select Review in tray, then Restore. A few changes send you somewhere else to finish.

[2:28] Deleted transactions might show Go to register, so you can recreate them there. An undone bank feed transaction goes back to Pending. Post it, then mark it as R in your register. For other changes, like a moved account or an edited split, select Edit to correct the transaction. Some changes need a closer look before you fix anything. Opening balance changes works like an amount change.

[2:57] If you see an opening balance equity row you didn't touch, you can ignore it. As you fix each transaction, it drops off the report and your total difference shrinks. When it reaches $0.00, your beginning balance is fixed and you're ready to reconcile. There are two more methods that can help. If there are unreconciled transactions, a quick mini reconciliation will fix everything.

[3:17] Start a new reconciliation using the ending balance and ending date from your most recent statement. Select all of the transactions that should be reconciled and finish. You'll get a reconciliation report for your records, and it works whether you have one transaction or several. And if there are different types of changes that you don't want to fix one by one, you can start over instead.

[3:36] Your primary admin or your accountant can undo the reconciliation from the History by account screen. For more on this, see our video on inviting an accountant to your company. Now you're ready to use the discrepancy report to correct your beginning balance and get back to reconciling.

Common causes of beginning balance issues

There's a discrepancy in your beginning balance when something changes on a transaction since a past reconciliation. The most common causes are:

An incorrect opening balance entered when the account was created in QuickBooks.
A reconciled transaction was edited, deleted, voided, moved, or unreconciled. This changes the ending balance of your last reconciliation and sets the beginning balance for the next one.
A categorized bank feed transaction that was undone and sent back to "pending".
A transaction dated before your last reconciliation's ending date that was reconciled manually, adding it to your beginning balance outside of a reconciliation.

Step 1: Prepare to reconcile

Collect your bank statements for the account and date range you want to reconcile. You need admin access to view and edit reconciliations.
Go to All apps, Accounting, then Bank transactions.
Make sure every transaction from the period is matched, categorized, posted, or excluded. For accounts connected to online banking, match and categorize all downloaded transactions.

Tip: Make a note of the exact amount your beginning balance is off by before you start. The changes you find should add up to that amount.

Step 2: Open the Reconcile Discrepancy Report

Go to All apps, then Accounting, then Reconcile.
Select the account from the Which account do you want to reconcile? dropdown.
- Note: If you have multiple accounts at the same bank or more than one account of the same type, make sure you select the correct one.
Find the alert Your account isn't ready to reconcile yet. Your beginning balance is off by..., then select We can help you fix it.

Step 3: Review and fix each change

Work through the report one transaction at a time.

Check the What happened column to see what changed, when, and who changed it.
Select Review in tray for the details. For the full history of a transaction, select the dropdown next to Review in tray, then View History.
Follow the suggested fix in the tray, or make your own correction based on your records.

Before you make corrections:

Only fix a change that was made in error. Some changes are intentional, and the suggested fix assumes an error. If a correction affects a reconciled period or your opening balance and you're not certain, check with your accountant.
If a fix tells you to reconcile an individual transaction, you can either mark it as R (reconciled) in the account register, or reconcile the account again using the same ending date and ending balance as your last reconciliation. Both correct the beginning balance, but only reconciling again records the change on a reconciliation report.

Step 4: Check for other changes

If the report is clear but your balance is still off, two kinds of changes won't appear there.

Deleted and voided transactions

Go to Settings, then Audit log. Filter to the account and the period since your last completed reconciliation. Review the audit log for deleted or voided transactions.

Transactions reconciled outside of a typical reconciliation

Select All Apps, Accounting, then Chart of accounts.
Select View register for the account you want to review.
Filter the account by Reconcile status. Look for any transaction marked R dated after your last completed reconciliation. To change one back to uncleared, refer to: Undo or remove transactions from reconciliations in QuickBooks Online.

Confirm your balance is fixed

When you've resolved everything, the Total discrepancy difference will show $0.00. The changes you found should also add up to the amount you noted in Step 1. Your beginning balance now matches your bank statement, and you can start reconciling.

If you run into issues during the process, refer to: Fix issues the first time you reconcile an account in QuickBooks Online. If your balance still doesn't match after working through these steps, your accountant can help you get back on track.

You can also get QuickBooks-certified QuickBooks Live to categorize transactions and reconcile your bank statements every month. Learn more about Intuit Experts Bookkeeping.

Get a QuickBooks-certified bookkeeper to help you categorize transactions and reconcile your bank statements every month. Learn more about Intuit Experts Bookkeeping.