How to Fix QuickBooks Bank Reconciliation Problems

QuickBooks reconciliation discrepancies cause major problems for users. Reconciling transactions often leads to technical errors that disrupt business processes. Furthermore, reconciliation matches bank statements with recorded transactions in QuickBooks accounting software. Consequently, users struggle to align different transactions properly. This article highlights the troubleshooting steps and solutions to fix QuickBooks Desktop bank reconciling issues. In addition, it introduces the steps to fix uncleared transactions after a reconciliation in both QuickBooks Desktop and Online.

Steps to Resolve QuickBooks Desktop Bank Reconciling Issues?

Reconciliation compares QuickBooks transactions with bank statements. The difference should be USD 0.00. In case the balance fails to match or alters after reconciliation, review missing, duplicate, or edit transactions. Correcting these transactions becomes mandatory to ensure accurate reconciliation. Here are the steps to fix the QuickBooks Desktop bank reconciliation error when accounts do not match bank statements:

Step 1: Review Starting and Ending Balances

Check that the opening and beginning balances are precise. Once confirmed, move to the next step.

Step 2: Identity Modified, Erased, or Added Transactions

Use QuickBooks reports to locate discrepancies like changed identity, added transactions, or erased transactions.

Here are the steps to do it:

1) Run a Reconciliation Discrepancy Report

This report lists transactions modified since the last reconciliation.

• Open the “Reports” menu.
• Browse over “Banking” and choose the option “Reconciliation Discrepancy”.
• Select the account and choose the “OK” button.
• Check the report. Detect discrepancies.
• Contact the person who performed the changes. Modify the transaction if required.

2) Run a Missing Checks Report

This report classifies missing checks impacting the ending balance.

• Open the “Reports” menu.
• Browse over the “Banking” option and choose the option “Missing Checks”.
• Select the account and choose the “OK” button.
• Compare the report with the bank statement. Erase the transactions not listed in the statement.

3) Run a Transaction Detail Report

This report helps identify transaction adjustments using the steps below:

• Open the “Reports” menu.
• Browse over “Custom Reports” and choose the option “Transaction Detail”.
• Choose the “Display” tab.
• In the “Date From” field, add the earliest date or leave it blank.
• In the “Date” To field, add the date of the last reconciliation.
• Go to the “Filters” tab.
• In the “Account” field, choose the reconciled account.
• In the “Entered/Last Modified” field, set:
• “Date From” to the last reconciliation date.
• “Date To” to today’s date.
• Choose the “OK” button to run the report.
• Classify discrepancies. Compare with the bank statement.
• Contact the person who performed the changes. Change the transactions if required.

Note- Adding or changing reconciled transactions often requires a mini-reconciliation.

Step 3: Search for Reconciliation Adjustments

Users often make reconciliation adjustments to compel QuickBooks to match bank records. Do not make changes without an accountant’s guidance. Changes do not resolve errors. Resolving errors later triggers more problems.

1) Review for Inaccurate Adjustments

Here are the steps to check and review the account for wrong adjustments:

• Open the “Lists” menu and choose the option “Chart of Accounts”.
• Open the “Reconciliation Discrepancies” account.
• Set the “Dates” field to cover your last few reconciliations.
• Look for incorrect adjustments affecting the account balance.
• Contact the person who made the adjustment. Ensure your rectifications do not conflict with it.

2) Finish Reconciling

Once all issues are resolved, complete the reconciliation. In case of zero issues, undo the QuickBooks previous reconciliation to rectify the opening balance. In case a transaction from years ago was modified or erased, undo previous reconciliations until the opening balance is precise.

Related Topic: Reconcile an Account in QuickBooks Desktop

Why is it Crucial to Resolve QuickBooks Reconciliation Discrepancies?

It is crucial to resolve QuickBooks Reconciliation discrepancies due to the following reasons:

• Avoid Future Mistakes: Fixing discrepancies helps prevent repeating errors. This saves time and money.
• Improve Accuracy: Correcting discrepancies ensures correct financial records. Accuracy is crucial for financial statements and reports.
• Stay Compliant: Unresolved discrepancies trigger audits. Audits are expensive and time-consuming.

How to Clear Uncleared Transactions after Reconciliation in QuickBooks Desktop and QuickBooks Online?

Uncleared transactions are entries that do not match the bank statement during reconciliation. These comprise checks, deposits, or expenses that are not cleared.

Steps to Clear an Uncleared Transactions Report in QuickBooks Desktop

• Open QuickBooks Desktop.
• Click on the “Reports” or “Statement” tab.
• Choose the option “Balance Sheet” from the drop-down menu.
• Go to the “Amounts” tab and click the “Customize” button.
• In the customization box, choose the “List” option.
• Select the “Uncleared Statement” option for the account.
• Choose the option “All Accounts Distribution”.
• Use filter preferences by choosing the state.
• Run the statement and check uncleared transactions.
• Save the customization.
• Check the “Uncleared Payments Statement” as required.
• Save the document to your system.
• Use this statement to clear uncleared transactions.

Steps to Clear Uncleared Transactions after Reconciliation in QuickBooks Online?

Here are the steps to remove uncleared transactions in QuickBooks Online:

• Open QuickBooks Online.
• Choose the “Banking” option from the left menu.
• Select the bank account with uncleared transactions.
• Click the “For Review” tab.
• Check the box beside the transactions to delete.
• Click the “Batch Actions” drop-down menu and choose the option “Exclude Selected”.
• Open the “Excluded” tab.
• Choose the transactions to delete.
• Click the “Batch Actions” drop-down menu and select the option “Delete”.
• Confirm by clicking the “Yes” button.
• QuickBooks will permanently erase the transactions.

Note: Do not erase reconciled transactions. Instead, create a reversing entry.

Read More: Fix Beginning Balance Issues in QuickBooks

What are the Common QuickBooks Reconciliation Problems?

Users often face discrepancies that need rectification. Here is the list of the common QuickBooks Reconciliation problems:

• Error Message: “Hold on! Your account is not ready to get reconciled yet.” This occurs when a reconciled transaction is erased or changed.
• Date or Account Changes: Changing the date or source account of a reconciled transaction triggers errors.
• Unreconciled Past Transactions: These give rise to issues during reconciliation.
• QuickBooks Crashes: The software often crashes while reconciling.

Final Words

Reconciliation discrepancies trigger frustration, but they are fixable. Follow the steps mentioned in this article to correct errors and prevent future mistakes. Still, if there are certain doubts or queries, feel free to reach out to our team of QuickBooks experts.

FAQ’s