Does your Bank Account Balance in QBO differ substantially from what you have in the bank? You are not alone. There is more to reconciling your bank account than checking off the cleared transactions. To make sure that all our client’s QBO files match the corresponding balance at the bank we complete the following 4 tasks before we hit the Finish Now button:
Check for Duplicate Transactions
In the bank account register, find the Filter button on the left > under Reconciled Status choose “Not Reconciled”
These transactions left in the Bank Register are either duplicates or just haven’t been cleared, like a check that someone didn’t cash or a transaction at the end of the month that will clear soon.
Best to adjust transactions that may have been entered incorrectly (a small discrepancy in the amount or a duplicate) now before you hit the “Finish Now” button. To clear these up, simply click on the transaction > Edit > make the adjustment to the amount or click More > Delete if the transaction is a duplicate.
Be very careful, you don’t want to Delete transactions that cleared the Bank. These transactions will have a C sign:
If so, search for the duplicate transaction in the Register and Delete it instead.
Check the Opening Balance Equity
When a bank account is added to QuickBooks, if there is a balance in the account at the bank, QuickBooks adds a balancing entry, that is often not needed. If such a transaction exists, usually you can delete it to correct both the balance in the Bank Register and in the Opening Balance Equity Account.
Check for Errors from Bringing in Transactions from Banking Sync
My favorite error is when the same transaction uses the same bank account on both sides of the transaction. The Payment account and the Category are the same. To fix it, just correct the Category in QuickBooks.
The second error we see often in Transfers between your bank and credit card being entered twice – entered once on one account and a 2nd time on the other Go to the QuickBooks section of the Banking Transactions tab to make sure that there were not any incorrect transfers taking place while Adding/Matching. If there are, click on Transfer and make the necessary adjustments.
By diligently performing these tasks, you can ensure that your QuickBooks Online bank balances accurately reflect your actual bank account. Regular reconciliation and attention to detail are key to avoiding discrepancies and ensuring the integrity of your financial data.
For more on reconciling check out these past blog posts:
- https://www.budgetease.biz/blog/how-to-make-a-bank-reconciliation-using-quickbooks
- https://www.budgetease.biz/blog/reconciling-bank-statements-small-business-bookkeeping
If you have any further questions or need additional information, BudgetEase is here to help!