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Fix beginning balance issues when reconciling in QuickBooks Online
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.
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.
Related links
Get personalized help fixing beginning balance issues with Intuit Experts.
Gather bank statements for the bank and date range you want to reconcile.
Go to All apps
, then Accounting, then Bank transactions (Take me there).Ensure that all transactions from that period have been matched, categorized, posted, or excluded.
Go to All apps
, then Accounting, then Reconcile (Take me there).Choose the account you wish to reconcile 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're reconciling the right one.
If the Beginning Balance doesn't match the ending balance of the last reconcile, there will be an alert that reads "Your account isn't ready to reconcile yet. Your beginning balance is off by..."
Note: for accounts connected to online banking, match and categorize all downloaded transactions.
Select the link in the alert that reads, "We can help you fix it." This opens the Reconcile Discrepancy Report and lets you begin researching.
Get a QuickBooks-certified bookkeeper to help you categorize transactions and reconcile your bank statements every month. Learn more about Intuit Experts Bookkeeping.
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