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QuickBooks Reconciliation Discrepancy: Justifications and Solutions

Submitted by David Adam on Fri, 01/12/2024 - 06:30

Bank reconciliation has a bold impact on getting precise visibility into cash availability, correct statements, fraud detection, faster economic closure, and effortless audits. A daily basis of bank reconciliation can assist companies in detecting any dispute items on bank statements and taking action immediately. However, comparing two sets of bank statements can be monotonous and time-consuming. Hence, business owners use software like QuickBooks to detect any mysterious transactions. But sometimes, QuickBooks reconciliation discrepancy happens while using it.

B reconciliation bank statements are essential for small businesses to confirm the recorded balances are equal to the bank's reported ratio. Besides this, it productively handles cash flow and maintains correct financial records, offering valuable insight into the business's financial position.

Overall, reconciliation bank statements indicate a healthy financial situation that QuickBooks helps, but sometimes QuickBooks reconciliation discrepancies happen, so it is necessary to understand the reasons and solutions, which we will discuss in this article.

Summary of Bank Statement Reconciliation

A bank reconciliation statement is a statement a business designs on a precise date to equal the bank credit. It is indicated in its cash book with the balance provided by the bank's passbook. The documents revealed the factors contributing to the dissimilarities between the two. An organization can schedule a bank reconciliation statement anytime during the financial year.

Preparing a bank reconciliation report is not mandatory, and there is no fixed date for preparing one. However, diligent financial teams will conduct bank reconciliations every year. They do this to ensure that all bank-associated transactions are registered adequately in their cash book's bank queue and by the bank in their accounts books.

What is the substance of bank reconciliation statements?

This bank reconciliation system aims to detect any mistakes in registered transactions. In addition, it implies having an updated and correct view of the same bank balance on a particular date. This can aid in spotting any uncommon or mysterious payment that might be a symbol of a scam.

What are the causes of the QuickBooks reconciliation discrepancy?

Here are some of the causalities of QuickBooks reconciliation discrepancy.

● Modified ending balance.
● Incorrect opening and beginning balances.
● Changing, removing, or including transactions recently.

Troubleshooting Solution for QuickBooks Reconciliation Discrepancy

When you compare an account, you reconcile transactions in QuickBooks with your bank reports. Ultimately, the difference between the two statements must be $0.00.

If the result is not the same as above mentioned, or if you reconciled an account before and the ending balance changed, do not be concerned about it. Here is how to detect and fix problems so you can finish negotiating.

1. Cross-check Your Opening and Beginning Balances Before Reconciling.

Before comparing the two bank statements, you must confirm that your opening and beginning balances are accurate. Once you understand these are correct, you can search for other problems.

2. Searching for Modifications, Remove or Include Transaction

Many statements in QuickBooks reflect that anything has been modified, removed, or included.
Operate a Reconciliation Discrepancy Statement

This statement reflects any transactions that were modified since your last reconciliation. Statement dates arrange them.

1. Press the Report menu. Hover over Banking and choose Reconciliation Discrepancy

2. Choose the account you are reconciling and then press OK.

3. Check the report and search for discrepancies.

4. Discuss with the person who made the modifications. When you understand everything about changes, edit the transactions as required.
Run a Missing Check Statement

This statement reflects any missing checks. These can throw off the ending balance of your reconciliation.

1. Hover over the Banking option under the Report menu and choose Missing Checks.

2. Click on the account you are reconciling and choose OK.

3. Check the report. You were searching for transactions using information not mentioned in your bank reports. They should be on your reconciliation, if not your bank documents.

Operate a Transaction Details Report.

Apply this report to check if any transaction has been modified.

1. Hover over Custom Report under the Report menu and choose Transaction Detail.

2. Press the Display tab

3. Choose the earliest Date in QuickBooks for the account under the Date From section.

4. Click the Date of your last reconciliation in the Date to Section

5. Press Filters tab

6. Set the Date from the Date of your last reconciliation under the Entered/Last Modified section. Then, establish the Date to today's Date.

7. Hit OK to run the report

8. Searching for discrepancies or transactions is not the same as what is on your bank statement

9. Communicate with the person who made changes and edit the transactions as per requirement.

3. Reconciliation Adjustments

Sometimes, users make reconciliation adjustments to force an account in QuickBooks to equal their bank records. It is suggested that you not reconcile adjustments without your accountant's instruction. Also, remember that adjustments or modifications do not fix the blunders, and if you resolve the mistake, adjustments cause issues.

Check the account and verify no one made a wrong adjustment

1. Choose Chart of Accounts and under the List menu.

2. Click the Reconciliation Discrepancies account

3. Establish dates for your last few reconciliations from the Dates section.

4. If you see any modifications making the account balance incorrect, contact whoever made the changes. Confirm that your changes are not disputed with the modifications.

Read more: Control Risk in the Company with Risk Management in Outsourced Accounting Service

Bottom Line!

Reconciling your bank reports is crucial since it ensures that your financial records correctly show your bank account balance. Besides this, it assists in detecting any discrepancies or mistakes, stops fraud, and offers valuable insight into your cash flow and financial condition. Business owners usually find it tedious to reconcile bank statements, but QuickBooks can help you.

This software can reconcile your bank statement, but sometimes QuickBooks reconciliation discrepancy happens while using it. Hence, knowing how to fix it can be worthwhile for you