This article covers how to troubleshoot an account reconciliation. For instructions on why and how to reconcile, see What is a reconciliation? instead.

Select the reconcile issue you're experiencing from the list below


Incorrect opening balance: where does the opening balance come from?

Understand what transactions affect the opening balance

  1. Select My Accountant/ Accounting from the left menu.
  2. Select Chart of Accounts at the top.
  3. Find the account you want to view and in the Action column, select View register (or Account history).
  4. The last column on the right will indicate the status of each transaction.
    • Any transaction with the status of R affects the opening balance regardless of date, type, or amount.
    • Any transaction with the status of C or blank does not affect the opening balance. 
  5. If the last reconciliation balanced correctly, one of the following scenarios has taken place:
    • Transaction(s) were edited in the register and the reconcile column was changed to show the wrong status as follows:
      • Unreconciled transactions were incorrectly marked with an R so they affect the opening balance (they should not). 
      • Reconciled transactions were incorrectly marked with a C or left blank so they no longer affect the opening balance (they should).
    • Transaction(s) marked with R were deleted from the register.

Locate the discrepancy

Use the changed transactions report to see what transactions have changed since the last reconciliations.
  • If you are able to locate the transaction(s) using the changed transactions report, while in the report, select the transaction(s) to edit the amount if necessary and/or view the register to correct the status (R, C or Blank) and re-start the reconcile.
    • If a previously reconciled transaction was deleted, did you reenter it to its original state? If not, make these changes and check your opening balance and restart your reconcile.
  • If you are unable to locate the transaction(s) or correct the opening balance, there are additional reports you can use to help identify the issue.
    1. Print a copy of your last Reconcile Report:
      1. Select Reports from the left menu, then type Reconciliation Report in the search box and select that report.
      2. Choose the account in question and Print the most recent reconciliation report.
    2. Select the Gear icon at the top, then Reconcile and write down the opening balance.
    3. Run the following report:
      1. Select the Gear icon at the top, then Chart of Accounts.
      2. Select the account in question to highlight it.
      3. In the Action column, select the drop-down arrow and choose Run Report.
      4. Select Customize.
      5. Set the Transaction Date to All Dates.
      6. Apply the following filters:
        • If you are using QuickBooks Online Plus or Essentials:
          1. In the Rows/Columns section, select Change Columns.
          2. Check the Last Modified box. 
          3. In the Filter section, check the Cleared box choose Reconciled from the drop-down arrow to the right.
        • If you are using QuickBooks Online Simple Start/EasyStart, go to the Sort By field and select Clr.
      7. Select Run Report.
    4. Compare this report with your bank statements. Consider the following:
      • This report shows all the transactions that are marked reconciled in QuickBooks Online. Since we assume the bank statements are accurate, the idea is to get the report from QuickBooks Online to match the bank statements.  If you're using QuickBooks Online Simple Start/EasyStart, look only at transactions that have a letter R in the Clr column.
      • Compare the total payments amount and the total deposits amount on your bank statements to the totals listed in the reconcile window of QuickBooks Online This will help further identify if the incorrect transaction(s) are deposits or payments.
      • If you can't find errors or omissions in QuickBooks Online records, the problem may be the result of a bank error. To determine this, you'll need to check hard-copy documentation that you have. If it does turn out to be a bank error, record an adjusting transaction for the difference between what the statement says and what the transaction should be. Then contact the bank to report the error.  When you receive the next bank or credit card statement, verify that it contains an adjustment for the error, then find and delete the adjustment transaction that you made.
      • Check to see if the difference is a factor of 9.  If it is, someone may have transposed some numbers of one of the transactions.  For example, if the amount was really $220.00, but they entered $202.00 in QuickBooks Online, the amount of your difference would be $18.00, which is a factor of 9.
      • Are one or more transactions on your bank statement missing altogether from QuickBooks Online?  In this case, you may need to do 1 of 2 things:
        • Uncheck the box that says Hide transactions after the statement's end date located above the deposits and other credits column.
        • Add any missing transactions to the register so they will show up on the reconcile list.
      • You may have overlooked your interest earned or bank fees. If so, enter them in QuickBooks Online.
      • One of the checks/cheques or the deposits may have been entered incorrectly.  Double-check the amounts and make sure they are check-marked correctly.
    5. After you've made any changes as necessary in QuickBooks Online, run and print the report again. 
      • If the report total matches what the opening balance should have been, you've found your problem and can continue the reconcile. 
      • If not, you'll want to repeat the process until you find the problem transaction(s).  It is likely that the changes were made to more recent transactions however we ask that you run the report for all dates because any transaction from any period with a letter R can affect the balance.  If you prefer, start with most recent transactions and statements first.

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Is your opening balance correct, but you still have unreconciled historical transactions in your register?

Let's say your opening balance is correct but you have some old unreconciled transactions in QuickBooks Online which have already appeared on your bank statement in the past.  If the opening balance matches, then one or more of these old transactions has already been accounted for (it has been duplicated and marked with an R).  Here's how to deal with this situation:

Run the following report to identify the problem transactions

  1. Select the Gear icon at the top, then Reconcile and write down the opening balance.
  2. Select the Gear icon at the top, then Chart of Accounts.
  3. Select the account in question to highlight it.
  4. In the Action column, select the drop-down arrow and choose Run Report.
  5. Select Customize.
  6. Set the Transaction Date to All Dates.
  7. Apply the following filters:
    • If you are using QuickBooks Online Plus or Essentials:
      1. In the Rows/Columns section, select Change Columns.
      2. Check the Last Modified box. 
      3. In the Filter section, check the Cleared box choose Reconciled from the drop-down arrow to the right.
    • If you are using QuickBooks Online Simple Start/EasyStart, go to the Sort By field and select Clr.
  8. Select Run report.

If the QuickReport shows any transactions that say Adjust or Adjustments in the Memo column and have a letter R in the Clr column, they can be considered possible culprits.  Adjustments are made because previous reconciles did not balance. When the adjustment is put in, it is taking the place of an actual transaction that was either missing or duplicated.

If there are no adjustments, once the historical transactions have all been resolved and the report is correctly reflecting the opening balance, you should be able to continue your reconciliation.

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What if my opening and ending balances are correct but the reconcile still doesn't match?

When reconciling in QuickBooks Online, you're required to input the ending balance, which comes from the bank statement.  It's imperative that this balance is entered accurately. 

If your opening balance and ending balance are correct and the difference does not equal 0, then the error lies in the transactions that have been check-marked. 

Go through and double-check the following:

  • If you see a corresponding transaction on both reports, cross them off and move to the next transaction.
  • If the report from QuickBooks Online has a transaction that is not on the statement from the bank, click the letter R in the register to remove it.
  • If the report from QuickBooks Online has a transaction that is on the statement from the bank, but a different amount, Edit the transaction to reflect the correct amount
  • If the statement from the bank has a transaction that is not on the report in QuickBooks Online, first check the register for the transaction.
  • If you find the transaction place a letter R on it and save it.
  • If the transaction is not in the register, add it to the register and place a letter R on it.
  • If the adjustments add up to the amount of the outstanding historical transactions you can delete the adjustments and manually reconcile the historical transactions in the register. 
  • To manually reconcile a transaction click Edit from the register and add the letter R in the check mark column. 

If the transactions are all correctly checkmarked, and the ending balance is correct, then the opening balance has to be incorrect. If this is the case, see the opening balance is incorrect when I reconcile section of this article instead. 

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Find previous reconciliation adjustments

When you run a reconcile and it doesn't balance, you receive an option to create an adjusting entry.  If the adjustment is accepted and created, the memo field will contain a note that says Reconcile Adjustment. 

You may then go back the same day or at a later time to view, edit or delete the adjustment.

You can locate the adjustment using one of the following methods, depending on the format you prefer:

  • Using the register you reconciled
  • Search function. The list will contain all of the reconcile adjustments that have been created by date order, starting with the most current. 
    1. Select the Search icon at the top, then Advanced Search.
    2. Select All Transactions from the first drop-down menu.
    3. Select Memo from the drop-down menu underneath, then Contains, then type Reconcile in the Enter Memo box.
    4. Select Search.
  • Transaction List by Date report (This report only applies to Essentials and Plus versions).
    1. Select Reports from the left menu.
    2. Enter Transaction List by Date in the Go to report search field.
    3. Select the appropriate time frame or set custom dates in the Report period.
    4. Select Customize.
    5. In the Filter section, check the Memo box.
    6. Type Reconcile Adjustment in the box.
    7. Select Run Report.

Discrepancy report.

If you are questioning the balance of one of your accounts, a discrepancy report is normally the quickest way to find what has changed. It can also be useful when you're unable to determine which transactions that have been changed that had been previously reconciled. 

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