QuickBooks Errors & Solutions: How to Fix Reconciliation Discrepancies?

​In the long list of QuickBooks features for accounting, the automatic reconciliation of accounts is one of the most useful features. Reconciliation in QuickBooks is a great tool which can save you a lot of time and can help you to manage your accounts effectively. The reconciliation feature allows you to be sure that your account shows your business transactions with near to perfect accuracy.

But if you have reconciled your accounts and then if it still shows a different balance during the reconciliation, then you should consider it as reconciliation discrepancies.

Following can be the reason for the reconciliation discrepancy in your accounts.

• Modification, deletion or addition of the previously added reconciliation
• Reconciliation adjustments (Journal entries, etc.)

So, if the reconciliation discrepancy has occurred due to the addition, deletion or modification of the previously added reconciliation, then you can follow the below-mentioned steps in order to make it correct.

Following are the reports which can be used to find the discrepancy in the QuickBooks reconciliation.

Reconciliation Discrepancy Report - This reports is used to check the transaction sorted on the basis of statement date that were modified since the last reconciliation

• First of all, click Reconciliation Discrepancy after choosing Banking from the Reports menu.
• Then choose the right account and click on Ok.
• Go through the report in order to find a discrepancy.

Missing Check Reports - You can use this report for verifying missing transactions

• First of all, click on Missing checks after clicking on Banking from the Reports menu.
• Then choose the right account and click on Ok.
• After that, go through the report for transactions that doesn’t match your bank statement.

Transaction Detail Reports - This report can be used to verify transactions that were modified.

• Click on Transaction details after clicking on Custom Reports from the Reports menu.
• Then from the Display tab, you will have to choose from the following
  
  • Date From – the earliest QuickBooks date
  • Date To – Last reconciled date
• Then from the Filter tab, you will have to choose from the following
  
  • Account – the amount being reconciled
    
  • Entered/Last modified
    
  • Date From- Last reconciliation date
    
  • Date To- Today
• Finally, choose Ok in order to run the report.

Reconciliation Adjustment
A reconciliation discrepancy can also occur because of a forced reconciliation which led to reconciliation adjustment. In order to solve this issue, you will have to review the Reconciliation discrepancy account for finding inappropriate adjustments.

• Choose Chart of Accounts, from the List menu.
• Choose and double-click the Reconciliation Discrepancies account.
• Now, from the Dates drop-down, choose the right filter
  
  • If you can’t find the transactions that needs to be changed in order to make it correct, then you will need to undo the previous reconciliation till the opening balance is correct.
    
  • After the opening balance is corrected, you can go on with the reconciliation of the current month while making sure that the opening balance sheet is right for each month. If you find an incorrect balance sheet for a month, then you will need to make corrections to it.
    
  • If transactions from the past were changed, then you will need to undo the reconciliation for the past.

Follow the above-mentioned steps and get rid of your reconciliation discrepancy. And if you are facing the reconciliation discrepancy then you can contact your QuickBooks hosting service provider.

Preeti

​Preeti is a technical content writer who is currently associated with Cloudwalk. She spends most of the time of her day in the world of cloud computing and accounting software. Her vast experience in the field of cloud software and her love for IT has allowed her to become a major contributor on most of the knowledge based cloud platforms.

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