As an accounting period comes to an end, most businesses create a reconciliation statement to ensure the accuracy of their accounting information. During the reconciliation process, you compare the transactions mentioned on your bank statements with the ones recorded in QuickBooks. Fix Issues at the End of a Reconciliation in QuickBooks Online It’s important to match the transactions to check if anything was missed or any redundant or inaccurate data has been added to your books.
At the end of the reconciliation, the difference between the amount mentioned on bank statements and in QuickBooks should be 0. If that’s not the case, then you may have inaccurate or missing transactions in your company file.
🔰 Reasons for Fix Issues at the End of a Reconciliation in QuickBooks Online
There can be a variety of reasons for the balances not matching between the bank statements and QuickBooks, but most of these reasons fall under certain categories, which help us to simplify the whole process.
Here are the top reasons for reconciliation issues in QuickBooks Online:
- Missing or duplicate transactions are present in QuickBooks.
- Bank hasn’t cleared the transaction mentioned in your books.
- An incorrect balance was entered when the reconciliation process began.
Let’s look at a few ways that we can resolve these issues in QuickBooks online to ensure the accuracy of our accounting data.
🔰 Check the Opening Balance in QuickBooks
Double check the amount you’re reconciling with the starting value. Whenever you set up an account, the beginning balance may or may not contain operations that were still outstanding while you established it.
Whenever you form a new QuickBooks account, you choose a day to begin monitoring operations. You input the value of your real-world bank statement on any given day. The account balance is the real beginning. Establishing the starting number at the start of a financial statement is recommended. Your initial reconciliation will be a lot easier as a result of this.
Here are the steps to review your opening balance:
- First adjust any older transactions that happened before the opening balance by using a general journal entry.
- Go to the Accounting menu.
- Click on Chart of Accounts.
- From the list, select the account and click on Account history.
- In the Payee Account column, check for Opening Balance Equity. In the memo, it should read “Opening Balance”.
- Note down the balance and date for the opening balance.
Note:You can enter the opening balance later if you forgot to enter it in the first place. Your accounts need an opening balance so that transactions can be adjusted properly.
🔰 Compare Transactions in QuickBooks Accounts with those in Bank Accounts
So you’ve ensured that the opening balances are correct. Now, you’re ready to move onto the next step in which we’re going to cross check the transactions mentioned in QuickBooks with those in your bank account. If anything doesn’t match properly, we’re going to address the problem to ensure that our books are accurate.
Let’s get started. Follow the steps given below:
- Go to your Bank’s website and Sign In.
- In your account, check the balance of the date mentioned as opening balance in QuickBooks.
- Ensure that the two values are equal.
If the balances don’t match, then follow the steps given below to correct the opening balance in QuickBooks:
- Go to the opening balance entry in QuickBooks.
- When the section expands, go to the Deposit column to edit the opening balance.
- Enter the value mentioned in your bank account.
- Click on Save.
You’ve successfully corrected the opening balance of your QuickBooks account. When you’re working with someone whom you try to create as a new person, you can go with the new things that you’ve done in order to make things more interesting in your life.
🔰 Check the Account History
When you begin the reconciliation process, the opening balance is already reconciled. All the other transactions, however, must be reconciled one by one by matching them to the transactions mentioned in the bank account.
Read More:QuickBooks Online Bank Reconciliation
Here are the steps to check that no other transactions are reconciled:
- From the Accounting menu, choose the Chart of Accounts.
- Find the correct account from the list and choose Account History.
- When more details appear, find the opening balance entry with Opening Balance Equity mentioned in the column titled Payee Account column.
- An R must appear in the tick column for the opening balance.
- For all the other transactions, there should be a C in the tick column, which means that these transactions haven’t been reconciled yet.
- Ensure that all the other boxes with R in them are turned into blank spaces.
You need to do this before you begin reconciliation of your accounts. Account reconciliation is a very important step in your financial accounting journey. It can even help you to identify fraud going on in your organization.
While reconciling their accounts, some businesses often stumble upon an error in their accounts. So they need to ensure that all the transactions other than the opening balance aren’t reconciled before beginning the reconciliation process. If any other transaction, in fact, is mentioned as reconciled, then you need to ensure that it’s marked as not reconciled.
Note:If you’re still having problems with Fix issues at the end of Reconciliation in QuickBooks Online, then you can get in touch with our experts via chat QB Live Chat 24×7 or call 1866-547-0606.
🔔 Frequently Asked Questions
What is Reconciliation in Accounting?
Ans: Reconciliation is a financial reporting procedure in which different pairs of data are compared to ensure that the results are valid and consistent. Reconciliation also ensures that the ledger accounts entries are uniform, correct, and comprehensive. Nevertheless, in contrast to commerce, reconciliation may be employed for individual matters.
Financial reconciliation is highly helpful for clarifying discrepancies in monetary documents or current accounts. Because of the scheduling of transactions and withdrawals, certain discrepancies may be allowed. Unexplained or inexplicable inconsistencies, on the other hand, might indicate fraud or accounting fraud. People and organizations can reconcile their data on a daily, quarterly, or annual basis.
Can We Discover Fraud by Reconciling Accounts?
Ans: If anyone at your organization has entered fraudulent or duplicate transactions in your accounts, then you’ll be able to identify those transactions and check the user that added it. By doing so, you’re ensuring not only the accuracy of your data but also the safety of your financial information.
How Much Time Does it Take to Reconcile an Account in QuickBooks?
Ans: That depends entirely on the number of transactions you need to reconcile. That’s why our experts recommend that you reconcile books regularly so that you have a limited number of transactions to go through for a particular time period. If you reconcile books for the entire year, then you’ll have way too many transactions to reconcile, taking significantly longer and much more work because you’ll have to verify your transactions multiple times.
See Also:Set up Bank Account in QuickBooks