Steps to Manually Resolve QuickBooks Reconciliation Discrepancy
QuickBooks is a robust accounting software that has helped millions of small and mid-sized business owners meet their financial goals. And a variety of tools and features make it the optimum software that it is today. One of those features is “Reconciliation in QuickBooks” that ensures that all your business transactions are displayed accurately on your account. But at times there might be Reconciliation Discrepancy in QuickBooks that may impact your productivity.
In this blog post we are going to discuss Reconciliation Discrepancy in QuickBooks, its reasons and solutions. However, Pro Accountant Advisor team provides QuickBooks support & help to resolve all the errors and problems related to QuickBooks software. You can dial our toll-free helpline number 1-800-880-6389 anytime to speak directly with one of the accounting expert.
What is Reconciliation Discrepancy in QuickBooks?
If you have already reconciled your account, but it displays a different balance in the next reconciliation – your QuickBooks account has Reconciliation Discrepancy. Finding and spotting such alterations may be tiring and frustrating.
What Causes QuickBooks Reconciliation Discrepancy?
It may occur because of reconciliation adjustments like journal entries, modified, added, or deleted reconciled transactions. Also QuickBooks Reconciliation discrepancies may also occur by one of the following reasons:
- Reconciliation arrangement.
- Past reconciled transaction have been an alteration, deleted or added.
Fixing Process of Bank Reconciliation Discrepancies in QuickBooks
In most cases, you receive prompt and notifications from QB Desktop that assist you identify reconciliation discrepancies. You must pay due attention to the issue immediately as later it may pile up and pose bigger issue.
Here are a few reports that may show upon your desktop:
- Reconciliation Discrepancy Report
- Transaction Detail Report
- Missing Checks Report
Below are the troubleshooting steps you can try to fix bank reconciliation discrepancies in QuickBooks.
✔ Missing or Modified Transactions
Reconciled transactions modified, added, or deleted post your last reconcile will have an impact on the opening balance. There are different reports applicable in QB Desktop that will assist you distinguish discrepancies and fix transactions.
The Reconciliation Discrepancy Report shows you transactions arranged by statement date altered since the last reconciliation date.
- First, Go to the “Report“, select “Banking” and click “Reconciliation Discrepancy” from the Reports menu.
- Select the Right Account and click “OK“.
- Read and review the report to analyze any discrepancies.
Missing Checks Reports allow you to find absent transactions.
- Select “Banking“, and then clicks “Missing Checks” from the “Reports Menu“.
- Choose the Appropriate Account and click “OK“.
- Read and review the report for transactions that mismatch with your bank statement.
Transaction Details Report assists you to recognize a transaction that was changed or modified.
- Choose “Custom Reports” and click “Transaction Details” from the “Reports Menu“.
- Once the Display tab opens, select the following:
- Date Form.
- Date To.
- Select the following in Filter Tab:
- Entered/Last Modified.
- Date From
- Date To.
✔ Reconciliation Adjustment
A forced past reconciliation developing to reconciliation adjustment may be the reason of a discrepancy. To solve the reconciliation discrepancy issue, you would require reviewing and evaluating the QuickBooks Reconciliation Discrepancy account for the improper adjustment.
- Open Lists menu and click “Chart of Accounts“.
- Double-click and open the “Reconciliation Discrepancy Account“.
- Select the appropriate filter from the Dates drop-down menu.
- In case you are unable to identify the transactions in the register that you have to rectify, you will have to undo existing reconciliation till the time the opening balance is rectified.
- After the opening balance is rectified, you can continue with reconciling the current month, ensuring the opening balance is rectified for every month. If you find that the beginning balance for any month is incorrect, you can rectify it by recreating a beginning (zero) balance.
- If a transaction that took place years ago was changed or removed lately, you may have to undo bank reconciliations for the previous years.
We have sorted all the necessary details about Reconciliation Discrepancy and possible solutions, and hope that you find this article helpful. In case you need assistance for reconciliation discrepancy in QuickBooks or looking for more details on it, you can contact us at our QuickBooks payroll support number +1-800-880-6389. We provide assistance 24/7.