In this post, we’ll explain how to approach reconciliation discrepancies, how to fix them, and when to ask for help. If you haven’t yet read our guide on how to reconcile accounts, check out the earlier blog post: Simplifying Your Bookkeeping: An Easy Approach to Reconciling Bank and Credit Card Accounts in QuickBooks.
Start with the Basics
• Double-check the beginning balance: It should match the ending balance from your last reconciliation.
• Make sure you’re reconciling the correct account and statement period.
• Verify that the ending balance and date match your current bank or credit card statement exactly.
Common Causes of Reconciliation Discrepancies
• A transaction was added, edited, or deleted after a previous reconciliation.
• Payments made to bills (A/P) were not properly matched or recorded.
• Payments received against invoices (A/R) were not matched correctly.
• Slight differences in transaction details (e.g., date, amount, memo) can prevent QuickBooks from recognizing a match.
• End-of-month transactions may not appear on the current statement if they cleared in the following period.
• A bank fee or interest payment wasn’t recorded.
• A duplicate transaction exists in QuickBooks.
• A transaction is missing in QuickBooks (e.g., not downloaded or entered manually).
• The wrong account was selected when entering a transaction.
How to Track Down the Difference
• Compare your statement to QuickBooks line by line, focusing on missing or unmatched transactions.
• Run a Reconciliation Discrepancy Report (under ‘Reports’) to see if previously reconciled transactions were changed.
• Run the Audit Log (under the Gear icon > Audit Log) to check for deleted or modified transactions.
Fixing the Discrepancy
• If a transaction was modified or deleted, re-enter it using the original details from your statement.
• If a duplicate exists, delete the incorrect one.
• If a transaction was posted to the wrong account, edit it to point to the correct one.
• Recheck all transactions after making changes before finishing the reconciliation.
• Compare your reconciliation period with your statement—transactions that cleared in the next month should not be checked off until the next reconciliation.
• Review transaction details closely—correct small inconsistencies in amounts, dates, or memos to enable matching.
• For A/R, check the customer’s Transaction List to ensure that payments are matched with the correct invoices.
• For A/P issues, go to the vendor’s Transaction List and verify that the payment is applied to the correct bill.
• If you encounter matching errors in QuickBooks Online (QBO) bank feeds, common issues include mismatched amounts, incorrect transaction types, or transactions already reconciled. To fix this, you can undo bank feed transactions, then re-match them or exclude them if they are no longer needed.
• Use the Reconciliation Discrepancy Report (under “Reports”) to track down changes.
• Enter an Adjusting Entry: If you need to make an adjustment to the reconciliation, enter an adjusting entry.
• Use the Reconciliation Discrepancy Report (under “Reports”) to track down changes
• Ask for help if the issue persists—sometimes a second pair of eyes can save hours of frustration.
Avoiding Future Discrepancies
• Avoid changing or deleting transactions that have already been reconciled.
• Close your books at the end of each period (via the Company Settings > Advanced tab).
• Regularly review your books and reconcile monthly to catch issues early.
When to Ask for Help
If you’ve tried everything and still can’t find the problem, it may be time to consult your bookkeeper or accountant. They can help identify errors that are harder to spot and ensure your books stay in good shape.
Final Thoughts
Reconciliation discrepancies can be frustrating, but they’re usually fixable with a little time and attention. The key is to stay calm, take it step by step, and not force a reconciliation by making random adjustments. Accurate books begin with clean reconciliations—and a little patience goes a long way.
Note: QuickBooks Online has different versions (e.g., Simple Start, Essentials, Plus, Accountant). Some features or menu labels may vary slightly depending on your subscription level.
If you require additional assistance with QuickBooks, please feel free to contact us.
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