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    What To Do When Opening Balance Doesn’t Match the Bank Statement

    [fa icon="clock-o"] Apr 15, 2016 9:17:15 AM [fa icon="user"] Kathy Dise [fa icon="folder-open'] Quickbooks, Financial Management

    Have no fear! When the opening balance does not match the bank statement there are two common reasons:
    1. iStock_000044461332_Small.jpgThere are previously reconciled transactions which were deleted OR
    2. A transaction which was previously reconciled was un-reconciled
    In order to track down what is going on here, the following strategies may be helpful in uncovering where the discrepancy (ies) lay:

    Easiest Fix

    • Start your bank reconciliation.
    • Note the amount of the difference in the beginning balance in QB to your bank statement. 
    • Enter the correct ending balance
    • Complete the bank reconciliation making sure that the total deposits and total withdrawals match the amounts on the bank statement.
    • The difference should be the amount of the difference in the beginning balance.
    • Is/are there any transactions from prior periods that can be checked to make the difference zero? 
    • Look at those transactions to make sure they were transactions that you adjusted or corrected since the last bank reconciliation.
    • Check these transactions. If your difference is zero you are done.

    View the Changed Transactions Report

    To see what transactions have changed since the last reconciliation, use the Reconciliation Discrepancy Report.
    • Go to Report
    • Banking
    • Reconciliation Discrepancy
    If you're able to locate the transaction(s) using the changed transactions report, while in the report, select the transaction(s) to edit them. View the register to correct the status (R, C or Blank) and re-start the reconcile.

    If a previously reconciled transaction was deleted, re-enter it to its original state. If not, make these changes then check your opening balance and restart your reconcile.

    Check for Deleted and Changed Transactions since the last Bank Reconciliation

    • Go to Report
    • Accountant
    • Audit Trail
    • At the top left – Customize
    • Choose the filter button. Filter the following
      • Date – Modify date to date of last bank reconciliation to today
      • Account – Choose the bank account you are reconciling
    The resulting list is a list of changes made since the last bank. Scan the list for a deleted or changed transaction. Correct the transaction and finish reconciling.

    Check for Duplicate Transactions


    ONLINE

    In the bank account register, click the grey Customize button (upper left corner) > Show: Not Reconciled or Cleared > Ok. This will show any transactions which may have been entered erroneously or as duplicates. To clear these up, simply click on the transaction > Edit > make the adjustment to the account or click More > Delete if the transaction is a duplicate. Confirm the change.


    DESKTOP

    In the bank account register, click the Sort by button at the bottom left. Use the drop down button to sort by Cleared Status. This will show any transactions which may have been entered erroneously or as duplicates at the end of the register. These transactions will not have a notation in the column to the left of Deposits. To clear these up, simply right click on the transition, Delete if the transaction is a duplicate.

    Check the Opening Balance Equity

    To make sure that the beginning balance is accurate. If the OBE is inaccurate, click on the transaction > Edit > make the balance adjustment > confirm the change. 

    Check for Errors from Bringing in Transactions from Banking Sync

    ONLINE

    Go to the QuickBooks section of the Banking Transactions tab to make sure that there were not any erroneous transfers taking place while Adding/Matching. If there are, click on the Transfer and make the necessary adjustments.

    Verify Uncleared Transactions

    Expenses or Income - but which were recorded within the system. Sometimes a transaction, which was marked Paid in the system, can be stalled with the bank. In this situation, either contact the bank about the matter or wait for the transaction to post.

    If you still need help, give BudgetEase a call. Having an incorrect opening balances is one of our most common situations that we come across.

    QuickBooks Online Shortcuts

    Kathy Dise

    Written by Kathy Dise

    Kathy has over 30 years experience helping small businesses succeed. As a commercial lender, commercialization expert and now as a QuickBooks diamond level advisor, Kathy understands the challenges small business owners face. Her experience helps business owners quickly accomplish their financial goals. As the owner of BudgetEase, Kathy works with clients to develop a plan to efficiently process 1,000s of small transactions so owners can make informed decisions. She lives in Shaker Heights, OH with her husband Ralph and enjoys golf, curling and walking in Cleveland’s fabulous Metro Parks.