At the end of a reconciliation, you may see a small amount leftover. This is known as a discrepancy. After reviewing everything for accuracy, you'll know if this discrepancy is a valid error.
When there's only a small amount leftover, QuickBooks lets you create an adjusting entry. This forces your accounts to balance so you can finish your reconciliation. Consider this as an option when you can't find the source of the discrepancy and there's only a small difference.
|Important: Adjusting entries are powerful. You must be absolutely sure the amount is small and an error. Adjusting entries should be a last resort. Making them for large discrepancies causes accounting issues. We recommend reaching out to your accountant if you're unsure.|
Enter an adjusting entry
- Go to the Accounting menu and go to the Reconcile tab.
- Reconcile your account.
- After you've reviewed everything for errors, select Finish now from the dropdown.
You'll see a message explaining that your account isn't balanced. Select the Add adjusting entry link. This creates an expense transaction if the difference is negative, or an income transaction if the difference is positive. It forces the account to balance.
If you need to locate an adjusting entry later on, here's how to find past reconciliation adjustments.