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Nishali
November 10, 2023
Question

Bank Reconciliation

  • November 10, 2023
  • 1 reply
  • 0 views

In my client's bank reconciliation, the opening balance is showing as $434.46 as of January 1, 2021. Whereas the actual balance should be 1950 on the same date. The COA shows the correct balance. We unreconciled all the transactions from 2021–2023. However, we cannot fix the opening balance for 2021. Please advise on the steps for correcting it. We tried to follow the below steps as advised for a different user in QB. But we still couldn't resolve it.

When you're ready, follow these steps to perform a mini-reconciliation. Here's how:

 

  1. In your company file, head to the Banking menu and select Reconcile.
  2. Choose the account you're working on. 
  3. In the Date of Statement field, key in the date for an "off-cycle reconciliation. QuickBooks will remind you that you're doing a mini reconciliation and put previously unreconciled transactions back without affecting the "cycle" that they follow.
  4. In the Ending Balance field, type the balance of your last successful reconciliation and click Continue.
  5. From the Reconcile window, check off the entries you're fixing and re-reconciling, and make sure the Difference field shows $0.00.
  6. When everything looks good, tap the Reconcile Now button. 

1 reply

S
SarahannC
November 10, 2023

Helping you correct the opening balance in your client's bank reconciliation is my priority, Nishali.

 

It seems like the steps you shared are applicable in QuickBooks Desktop. Can you share the challenges when following those steps? Were you able to follow them in your QuickBooks account?

 

However, if you're trying to correct an opening balance in QuickBooks Online, I recommend checking your bank statement and comparing the opening balance entered in QuickBooks. 

 

Can you confirm if there are other reconciled transactions before the year 2021? I also suggest making sure that all transactions entered in QuickBooks match your bank statement. 

 

Since you already unreconciled the previous reconciled transactions, you can follow these steps to correct the opening balance in QuickBooks.

 

  1. In QuickBooks, select the opening balance entry to expand the view.
  2. In the Deposit column, edit the balance.
  3. Select Save.

 

Once done, you can proceed to the Step 3: Review your account register section to complete the process. Then, start reconciling the account again. 

 

On the other hand, if you're trying to fix beginning balance, you can then run the Discrepancy report to review if the changes you made in your previous reconciliation is causing the discrepancy. At this time, I recommend checking this link: Fix issues for accounts you've reconciled in the past. 

 

Still, I recommend consulting your accountant for further assistance. They might use other methods to handle this properly. Lastly, you can visit this article for further guidance about reconciliation: Learn the reconcile workflow in QuickBooks.

 

If you have further concerns or questions about correcting the balance in your client's bank reconciliation, please add another post below. I'm here to assist you and provide guidance throughout the process. 

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