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savdakov-heritag
July 31, 2024
Solved

Reconciliation beg balance too high - register is correct and matches bank statement. It is not a matter of a wrong opening balance. How to fix?

  • July 31, 2024
  • 2 replies
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I was on an old desktop version of QB, had to unreconcile a bunch of months.  Now on QB online - trying to get caught up.  Register is correct but beg bal in reconciliation is wrong.
    Best answer by lila-godel

    The beginning balance in your reconciliation screen is the sum of all the transactions in the register that have a capital R in the cleared column denoted by a picture of a checkmark at the top of it.

     

    Since your beginning balance is too high one or more transactions adding up to 5,000.00 have an R in this column when they should not.

     

    Finding out which transactions they are, removing the R on each one and saving will correct the beginning balance.

    2 replies

    J
    Jelayca V
    August 1, 2024

    I can see the importance of maintaining seamless reconciliation after transitioning from QuickBooks Desktop (QBDT), @savdakov. Let’s work together to resolve the issue with your reconciliation beginning balance to ensure accurate records in QuickBooks Online (QBO).

     

    The beginning balance is the amount in the account at the start of the period you're reviewing. If there's an issue with this balance, it often indicates changes to your cleared transactions since your last reconciliation. Common reasons for an incorrect beginning balance include:

     

    • Entered an incorrect opening balance.
    • Adding older transactions without updating the original opening balance to reflect the change.
    • A transaction was edited, deleted, moved, or unreconciled from an already reconciled transaction.
    • Manually reconciling a transaction that did not appear in the next reconciliation.

     

    To fix this, you'll first want to ensure that the opening balance is correct because an incorrect opening balance affects all subsequent reconciliations. 

     

    Next, check and review your bank statement ensuring you're reconciling the correct account for the correct month:

     

    1. Go to Transactions, then select Reconcile.
    2. Select the account that you want to reconcile from the Account dropdown.

       

    If your account is connected to online banking, ensure you've matched and categorized all downloaded transactions before you start reconciling. Everything must be categorized to get the correct final beginning balance.

     

    If changes affect your beginning balance, you'll get the message We can help you fix it before you start reconciling. Select the link to open your discrepancy report. Then, review the report to decide if and how to make necessary changes.

    Depending on the situation, open this article and follow the step-by-step instructions to sort out the balance issue: Fix issues for accounts you've reconciled in the past in QuickBooks Online.

     

    Once you know your beginning balance is correct, you can start reconciling. If you see issues in the middle of your reconciliation, you can check this article to know what you should review: Fix issues at the end of a reconciliation in QuickBooks Online.

     

    Furthermore, let me add this article for future reference about the accurate reconciliation process in QuickBooks: Learn the reconcile workflow. This way, you're guided accordingly with this task.

     

    Come back to the Community if you have further questions about fixing balances and reconciling in QBO. I'll be right here to help you out.

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    savdakov-heritagAuthor
    August 1, 2024

    I have not done any reconciliation with QB Online.  I cannot, because the beginning balance that was brought in by your conversion is wrong.  The last reconciled month on the register matches the bank statement. 

    I did not enter an opening balance on QB Online.  The last 10 years of transactions were brought over by your conversion, which randomly chose a beginning balance.  

    I have not made any transactions to months that are already reconciled.  

    As I stated, my ending balance matches the bank statement.  The only thing that does not match is your randomly-derived beginning balance  Therefore I cannot reconcile anything.

     

     

    M
    Maybelle_S
    August 1, 2024

    Thanks for detailing your reconciliation issue, Savdakov. Let me share some details of the cause of this issue and provide additional assistance to fix it.

     

    When you set up a new account in QuickBooks Online (QBO), you'll have to specify a start date for tracking transactions and enter the balance of your actual account on that date. This starting balance is crucial as it establishes the opening balance for your records.

     

    The discrepancy in the beginning balance is due to not entering an opening balance in QBO. To fix this, we'll create a journal entry to record it.

     

    Here's how:

     

    1. Go to the +New button.
    2. Under Other, select Journal entry.
    3. Enter a date before the oldest transaction in the account as the opening balance date.
    4. In the Account column, use the drop-down menu to select the account for the opening balance.
    5. Add a note in the Description field so you know what the journal entry is for.
    6. On the second row of the Account column, click the drop-down arrow and choose Opening Balance Equity.
    7. Use your bank statements to enter the balance of your real-life account on the date you picked as the opening balance. You'll have to enter both a debit and a credit to keep things accurate. Enter the debits and credits based on the type of account you entered on the first row.
    8. Hit Save and close.

     

    After that, reconcile the journal entry to prevent it from appearing in future reconciliations. I'll guide you on how.

     

    1. Go to the Transactions menu and select Chart of Accounts.
    2. Find the account and select View Register from the Action column.
    3. Search for the journal entry you just created.
    4. Select it to expand the view.
    5. Tap the box in the Checkmark column until you see an R. This reconciles the journal entry.
    6. Click Save.

     

    Once done, your accounts will be balanced, allowing you to proceed with the usual reconciliation steps.

     

    Additionally, you can check this article to learn what to do if QuickBooks doesn't match your bank statement at the end of a reconciliation: Fix issues at the end of a reconciliation in QuickBooks Online.

     

    Furthermore, visit this link to help keep your financial records organized and accurate, manage your business, and meet compliance requirements: Categorize online bank transactions.

     

    Let me know if you have other reconciliation concerns or questions about managing your accounts and transactions in QuickBooks. You can drop a comment below, and I'll gladly help.

    L
    lila-godelAnswer
    November 11, 2024

    The beginning balance in your reconciliation screen is the sum of all the transactions in the register that have a capital R in the cleared column denoted by a picture of a checkmark at the top of it.

     

    Since your beginning balance is too high one or more transactions adding up to 5,000.00 have an R in this column when they should not.

     

    Finding out which transactions they are, removing the R on each one and saving will correct the beginning balance.

    S
    savdakov-heritagAuthor
    November 13, 2024

    A thousand THANK YOUS!  There were random records showing "R" that had not actually been reconciled.  Once we removed the R's, the reconciliation beginning balance now matches the actual balance in QB and the Bank Statement.  

     

    ANYONE THAT HAS REPORTED THIS PROBLEM - PLEASE TRY THIS!  

    Thanks again!

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