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eli27
Level 1

Can I correct my beginning balance after undoing and redoing a reconciliation that covers several months?

I found multiple errors in an account after a reconciliation was already processed by someon else. The more I dug the more errors I uncovered. After consultation I was directed to undo several months of transaction all at once, Now after correcting the errors my monthly beginning balance is incorrect. What is the gaap for my situation?

1 Comment 1
jenop2
QuickBooks Team

Can I correct my beginning balance after undoing and redoing a reconciliation that covers several months?

Yes, you can correct the balance, Eli27.

 

Any changes made to a previously reconciled transaction shift the last ending balance, which throws off the succeeding month's starting point.

 

Your first step is to identify the precise date and balance of the last correct reconciliation before the changes. You can do this by running the Reconciliation Discrepancy Report. Here's how to access it:

 

  1. Go to Reports, then choose Standard reports.
  2. Look for Reconciliation reports in the Search bar.
  3. Run this report for the period of your earliest undone reconciliation. It will show you exactly if there are transactions that were edited or changed in the Changes column. 
  4. Click View report to see the details about the changes. 
  5. Open each transaction and make the necessary corrections.

 

recon history .pngrecon history 2.png

 

The next step is to reconcile month-by-month, starting from the period of the last correct reconciliation. Then, ensure the beginning balance you use for that month exactly matches the starting balance on your bank statement. Proceed chronologically until you've caught up.

 

I would also recommend reaching out to your accountant for additional advice on this matter. Aside from that, our QuickBooks Live Expert Assisted Team stands ready to provide personalized support for managing reconciliations and other financial processes.

 

Lastly, I recommend reviewing these supplementary resources about the reconciliation workflow:

 

 

Please don't hesitate to ask for clarification or additional guidance. 

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