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Beginning balance issues in QuickBooks software reconciliation

I cannot stress enough how important it is to reconcile your Checking account every single month.  Throughout the month, there are going to be data entry mistakes.  Also, banks make mistakes all the time.  Unless you are checking the account for accuracy on a regular basis, you will never catch these mistakes and your balance will never be correct.  With that being said, for those of you who do reconcile every month you may have had an issue where your beginning balance that is listed in QuickBooks doesn’t match the beginning balance on the statement.  Why does this happen and how do we fix it?

The most common cause for the beginning balance being off is because someone has either edited or deleted a previously cleared transaction.  This is a BIG no-no.  The other reason could be data file corruption but that is unlikely.  If you suspect data file corruption – the first step is to call us so we can fix it for you before it is too late.

The way to find if a reconciled transaction has been changed or deleted is to run the Previous Reconciliation Discrepency Report. To do this, while in the Banking>Reconcile screen, click the button that says “Locate Discrepencies”, then click “Discrepency Report.”  This report will show you any transactions that have been edited or deleted.

To fix these issues, first write down the transactions and then close the report. Recreate any deleted transactions with their original dates and bring any edited transactions back to their original state.  Once that is done, go back to Banking>Reconcile.  What you need to do know is re-clear these transactions.  Enter in the date of the last reconciliation you did before the beginning balance went off.  Also enter in the ending balance of that same statement.  Click continue.  Once in the reconciliation screen, only check off the transactions that had shown on the Discrepency report that you fixed manually.  Once you check them all, your difference should be zero.  Then you can click “Reconcile Now.”  Next month, when you go to in to do your Reconciliation, your beginning balance should be right on.

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