What is QuickBooks Bank Reconciliation Error?
Reconciliation is the method in which user-entered transactions match your bank or company credit card statements, but QuickBooks reconciliation issues come with the method and are often reported. The method of reconciliation should be done regularly to verify accuracy in accounting reports.
Causes: Reconciliation errors in QuickBooks
QuickBooks Bank Reconciliation errors can be caused by reconciliation activities such as journal entries that are modified, added, or deleted in continuation of the reconciliation. A few more causes are below:
- Transactions that had been reconciled have been modified/ deleted/ added.
- Errors might also be caused by reconciliation adjustments, such as journal entries.
Symptoms of QuickBooks Bank Reconciliation Error
System Requirements to avoid QuickBooks Bank Reconciliation Error
Precautions to take before Resolutions QuickBooks Bank Reconciliation Error
Solutions of Reconciliation Errors in QuickBooks
Solutions to Fix Discrepancies While Reconciling Bank Account:
- Transactions Were Modified/Deleted/Added
- Reconciliation Adjustment
The following steps must be implemented to solve the issue, based on the cause.
1. Solution One: Transactions Were Modified/Deleted/Added
QuickBooks has several reports that can help users identify discrepancies in reconciliation.
A. Step One
The ‘Reconciliation Discrepancy Report’ shows transactions that were sorted by statement date, but which have been changed since the last reconciliation.
- To access this report,
- users must choose ‘Banking’ in the ‘Reports’ menu and then select ‘Reconciliation Discrepancy’.
- Next, users must select the correct account and select OK.
- Finally, the report must be reviewed to check discrepancies.
B. Step Two
The ‘Missing Checks Report’ helps users in verifying missing transactions.
- To access this report, choose ‘Banking’ in ‘Reports’ menu and select ‘Reconciliation Discrepancy’.
- Now, select the correct account and then select OK.
- Finally, the report must be reviewed for discrepancies.
C. Step Three
The ‘Transaction Detail Report’ helps users verify changed/modified transactions.
- To access this report, users must choose ‘Custom Reports’ in ‘Reports’ menu and then select ‘Transaction Detail’.
- Then, in ‘Display’ the following must be selected:
- ‘Date From’—The earliest QuickBooks date (or it can be left blank)
- ‘Date To’—The last reconciled statement date
- Now, in ‘Filters’, the following must be selected:
- ‘Account’—The account which is being reconciled
- ‘Entered/Last Modified
- ‘Date From’—Date of the last records
- ‘Date To’—The present date
- When this is done, users must select OK for running the report.
Note: After a reconciliation report has been identified, users must make the necessary corrections. If users need guidance on making these corrections, they must contact our QuickBooks experts.
2. Solution Two: Reconciliation Adjustment
Therefore, review the account and ensure that no one has made an incorrect Reconciliation adjustment:
- Reconciliation discrepancy might also arise due to a forced previous reconciliation that caused a reconciliation adjustment. In order to correct this error, users have to review the ‘Reconciliation Discrepancy’ account to check incorrect adjustments.
- To do this, users must select ‘Chart of Accounts’ on the ‘Lists’ menu. Then, they should choose the ‘Reconciliation Discrepancies’ account and double-click on it.
- Next, users must choose the correct filter from the ‘Dates’ drop-down menu:
- If users can’t identify the transaction(s) in the register that has to be corrected, they will have to undo the earlier reconciliation as long as the opening balance isn’t correct.
- After the opening balance has been corrected, users can reconcile the present month, while ensuring that the opening balance is correct for every month.
- If any transaction from a previous year was modified or deleted recently, users might have to undo the bank reconciliations for the past as many required year/s to reach where the opening balance is correct.