Fix Beginning Balance Issues in QuickBooks Desktop and Online

Because of beginning balance issues are you facing issues while reconciling your accounts? Then you don’t have to panic as you are not alone. Most QuickBooks users, whether they are using Desktop or Online, face differences between their bank records and beginning balances in QuickBooks. Without wasting time, let’s go through this article and know how to fix it.

Fixing beginning balance issues in QuickBooks Desktop

The Beginning Balance is either 0 or incorrect when you choose an account to reconcile after starting the reconciliation process. There could be several reasons for this:

The account wasn’t set up with a balance or with the right balance
Previously cleared and reconciled transactions were voided, deleted, or modified.
The file is converted from another version of QuickBooks.
Possible data damage.

Correct a zero balance

Create the opening balance again

If this is your first time reconciling the account, you can create the opening balance again. To fix it, make a journal entry and then reconcile.

Step 1: Create a journal entry

Enter the correct date and amount in the Start Reconciliation window.

Select Make General Journal Entries under Company.
Change the current date with the correct statement date of your beginning balance.
From the Account dropdown, choose the desired account.
In the Debit column, provide the accurate opening balance.
Then you have to select Opening Balance Equity and then you have to select Save.

Step 2: Reconcile to correct the Beginning Balance

You have to go to Banking and choose Reconcile.
From the Account dropdown, choose the desired account.
The statement date and closing balance that matches your Journal Entry.
Then you have to click Continue
Choose the Journal Entry under Deposits and Other Credits.
- Note: The Difference’s shown amount ought to be 0 at this point.
Now select Reconcile Now.

Fix an incorrect balance

Reconcile Discrepancy report

Begin by going to Reports, then you have to select Banking and then click on reconciliation Discrepancy.
After choosing the Account, click OK. A list of transactions that have changed since your last reconciliation will be available to you. To identify which transaction(s) are causing the problem, you have to use this report.
If a discrepancy is discovered, make a note of the transaction date and the Entered/Last Modified, as this will indicate when the modification was made.

Audit Trail report

Begin by going to Reports, then you have to select Banking, and then click on Previous Reconciliation
Then you have to select the account that you want to reconcile.
Choose the recent statement date. Select the transactions that were cleared at reconciliation time. (Report shows as a PDF file) then you have to click on Display. Take note of the statement’s creation date and the reconciliation.
Select Accountant & Taxes from the Reports menu, then Audit Trail.
To reconcile an account, set the Account filter to that account.
- Click on Customize Report.
- Navigate to Filters and select Account from the available options.
- In the account dropdown, you have to select the account.
Choose Display. After setting the Date filter to the statement date, leaving the From field empty, and the To date set and then you have to select OK.
Put today’s date in the To field and the previous reconciliation creation date from the PDF when setting the Entered/Modified filter.

Check to see if any of the reported transactions might explain the difference.

Previous Reconciliation report

You can only access the last reconciliation report if you are using QuickBooks Pro. Save a PDF copy of the other reports to your computer so you have a copy.

Begin by going to reports, then you have to select Banking and then click on Previous Reconciliation.
Click Display after selecting the Account and Statement Ending Date.

This report should be compared to previous financial institution statements.

Correct the discrepancy

You may need to edit or reenter the transactions to fix the discrepancy. One of the following options is worth a try:

Undo a previous reconciliation and redo it

Make a backup of your company file in QuickBooks.
Proceed to Banking, then select Reconcile.
Click on Undo Previous Reconciliation.
Choose OK after choosing Continue when requested.
You have to close out of reconcile and then you can open it again.

Ignore the discrepancy and let QuickBooks enter an offsetting adjustment

To finish the reconciliation process, you have to select Enter Adjustment. Under a special expense account QuickBooks will automatically create a Journal Entry. From your Chart of Accounts, you can review and make changes to it.

If you must find the Journal Entry, you can:

Use the Find feature:
- Click Edit and choose Find from there.
- After selecting Advanced, select Memo.
- After typing Balance Adjustment, choose Find. Any changes to the balance will be visible.
View the report on the previous reconciliation.
You have to go to Reports, then you have to select Banking, and then click on Previous Reconciliation.
You will notice a General Journal Entry in Cleared Transactions if there was a balance adjustment.

Understand limitations when you switch from other versions of QuickBooks

Some transactions may get unreconciled between QuickBooks Online and QuickBooks Desktop for Mac. It has an impact on your opening balance.

Fix Issues with beginning balance in QuickBooks Online

You can review how to examine your beginning balance and search for problems with accounts that you haven’t yet reconciled. Let’s fix issues the first time you reconcile an account in QuickBooks Online.

Don’t worry if the beginning balance appears to be incorrect when you reconcile an account for the first time. An incorrect opening balance is the primary cause of most beginning balance problems. This is the starting point that you entered when you first created the account in QuickBooks.

Your beginning balance problems should be resolved by adjusting the opening balance. To begin reconciling your account for the first time, go over the following.

A different set of items to check is provided here if the account has already been reconciled. Also, if you’re unfamiliar with the full process.

Step 1: Review the opening balance in QuickBooks

Verify the account you are reconciling double-check by looking at the opening balance. Transactions that were pending when you opened the account may sometimes not be included in the opening balance. The balance in your bank account on the day you decide to begin keeping track of transactions is known as the opening balance.

Note: This is how to reconcile transactions that you recently entered that were from before your opening balance. Then you can continue with these steps.

You have to go to Settings, then you have to select Chart of accounts.
Then you have to find the account on the list.
Click View registration.
Look for the entry for the starting balance. “Opening Balance Equity” ought to be listed in the Account column.
Then you can take note of the date and balance.

Note: Here's how to manually add an opening balance later if you forgot to enter one.

Step 2: Compare the opening balance with your real-life account

Now you know the date of the opening balance amount and date in QuickBooks. Verify it with your bank records.

Find your bank statement or log on to your bank’s website.
Verify in QuickBooks the account balance for the same day as the opening balance.
Then compare the two balances

You entered the opening balance accurately if the balances match. Proceed to Step 3.

Make the necessary corrections if the opening balance in QuickBooks differs from your bank records:

To expand the view in QuickBooks, choose the opening balance entry.
Adjust the balance in the Deposit column to reflect the information from your bank.
Click Save.

Step 3: Review your account register

Upon first reconciling an account, the opening balance is the sole item that is verified as correct. Reconciling any other transactions is not necessary. To make sure:

Begin by going to Settings then go to Chart of Accounts.
On the list, find the account.
To view further information, select View Register.
Look for the entry for the starting balance. “Opening Balance Equity” ought to be listed in the Account column.
There should be a R in the checkbox column.
Check the other transactions. Either a C or a blank should appear in the checkmark column.
Select the transaction to enlarge the screen if any other transactions have an R.
In the checkmark column, select the box. Continue checking it out until the box is empty. Next, choose Save.

Conclusion

We have mentioned the important steps in the above article related to Fix beginning balance issues in QuickBooks. Still if you face any query then you can call the help desk any time. The help desk team is available round the clock.

Also See: QuickBooks Error 15222 When Downloading Payroll Updates

Frequently Asked Question

Q1: What is a beginning balance in QuickBooks?

Ans. The beginning balance in QuickBooks is the starting point of your account’s balance when you first set it up or when starting a new fiscal period. It reflects the ending balance of the previous accounting period or the initial balance when you start using QuickBooks.

Q2: How can I prevent beginning balance issues in the future?

Ans. To prevent future beginning balance issues:

Ensure accurate data entry.
Avoid altering reconciled transactions.
Regularly reconcile your accounts.
Keep detailed records of all adjustments and reconciliations.

Q3: How can I correct the beginning balance in QuickBooks Online?

Ans. You have to start by reviewing the opening balance in QuickBooks. Then start by comparing it with your bank statement, and then make the corrections that are needed. In your account register you have to make sure that the opening balance is the only reconciled entry.

Q5: What are the causes for the beginning balance not to match in QuickBooks Online?

Ans. From an incorrect opening balance discrepancies can arise, changes made to previously reconciled transitions or deleted transactions,

Q6: How can you adjust the beginning balance in QuickBooks?

Ans. Go to Settings -> Then you have to select Chart of Accounts -> Find the account and then edit the opening balance entry to match your bank statement.

Q7: What if the beginning balance doesn’t match my statement?

Ans. In case the beginning balance doesn’t match your statement then it can lead to inaccuracies in your financial reports. It is important to address and then fix the discrepancy to ensure accurate financial tracking.