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Helen83
October 25, 2024
Solved

Register balance per bank recon different from balance sheet figure

  • October 25, 2024
  • 2 replies
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In my client's bank and credit card reconciliations, the Register balances don't match with the amounts in the balance sheet of the same date. How do I fix this issue?

Thanks 🙏

Best answer by Rainflurry

@Helen83 

 

"See attached. In this credit reconciliation, it says Register balance as of 11/02/2024 is $32,259.75. But if I open the balance sheet as at 11/02/2024, the balance for this particular credit card is $24,611.00. There is difference of $7,648.75."

 

The register balance shown on the Reconciliation Report is the register balance as of 2-11-24 and it did match the balance sheet when you reconciled.  However, if you then enter transactions after you reconcile and that are dated prior to the statement ending date, you will create a discrepancy between the register balance on the reconciliation report and the balance sheet.  The Reconciliation Report does not update the register balance when you run the report at a later date.  

2 replies

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Helen83Author
October 25, 2024

Sorry, I chose the wrong product to post this query. How do I change?

Thanks!

J
JanbonN
October 25, 2024

Hello there, Helen83. I'd be glad to help you fix these differences in QuickBooks Online (QBO). 

 

There are possible reasons why the two is not matching:

 

  • Pending Transactions: Transactions that have not yet cleared the bank.
  • Incorrect Categorization: Transactions linked to the wrong accounts. 
  • Unrecorded Transactions: Missing entries that should impact the bank or balance sheet accounts. 
  • Reconciliation Status: Recorded transactions that haven't been reconciled. 
  • Deleted or Inactive Transactions: Entries that have been removed or marked inactive. 
  • Manual Adjustments: Inconsistent adjustments between the bank register and the balance sheet.

 

That said, I recommend checking your client's bank register to verify if any of the above applies.

 

In regard to changing the product mentioned in your post, only our moderators can make those adjustments. Please provide the correct product name for them to make the necessary changes.

 

Additionally, you can run reconciliation report to get an overview of your previous reconciliation sessions.

 

If you have any further concerns about matching your register balance and balance sheet figures in QuickBooks, please let us know. We’re here to help in any way we can.

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Helen83Author
October 26, 2024

Hi @JanbonN, thanks for the reply. My client's credit card reconciliation as of 11 Feb 2024 indicates that Register balance as of 11/02/2024 is $32,589.75. However, when I go to the balance sheet as of that 11/02/2024, the credit card balance is $24,611.00. There is $7,648.75 difference. I understand these 2 balances should be the same for the reconciliation to be correct. To reconcile the 2 balances, what is your recommended action for me to do? Appreciate your advice. Thanks!

 

FishingForAnswers
FishingForAnswers
October 25, 2024

@Helen83  In short, you don't.

 

The reconciled balance is the balance of all transactions that have cleared within a particular account, typically a bank account.

 

The balance sheet balance is the balance of all transactions that have been entered into QuickBooks for the relevant account, regardless of whether they have cleared the bank.

 

The only time you will see these two distinct balances match is when, in the case of bank accounts, all transactions cleared the bank account prior to the end of the statement in question.

 

If it were otherwise, reconciliation would accomplish nothing.

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    Helen83Author
    October 26, 2024

    Hi @FishingForAnswers , thanks for your input. However, my concern is that the Register balance that shows in the bank and credit card reconciliations are different from the balances reflected in the balance sheet for the same ending date as the reconciliations. I believe these 2 figures should be the same at all times for the reconciliations to be meaningful. See attached. In this credit reconciliation, it says Register balance as of 11/02/2024 is $32,259.75. But if I open the balance sheet as at 11/02/2024, the balance for this particular credit card is $24,611.00. There is difference of $7,648.75. 

    I
    Irene R
    October 26, 2024

    Allow me to chime in and provide further clarification regarding this topic, Helen83.

    FishingForAnswers is correct regarding the reconciled balance being the total of all the transactions in a bank account, while the balance sheet balance is the total of all the financial activities recorded in QuickBooks for a specific account, even if they haven't shown up in the bank.

    Furthermore, I suggest reviewing your credit card reconciliation's starting balance and verifying that it corresponds with your credit card statement. I also recommend seeking assistance from your accountant to resolve this issue since it affects your financial records. If you don't have an accountant for your business, you can check this page to acquire one: Find a QuickBooks ProAdvisor.

    In addition, to tailor reports to fit your business requirements and address problems after reconciling an account, you can refer to these articles:
     

    Keep me posted if you need further help with your balances in QuickBooks, Helen83. I’ll jump right back in to assist you.

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