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

Oct 16, 2024 3:15:00 PM Kathy Dise Small Business, Financial Management, Bookkeeping, Profitability, small business bookkeeping, payroll, Virtual Bookkeeping Services, Online Bookkeeping Services, Cleveland Bookkeeping, Bookkeeping Companies, QuickBooks Bookkeeping Company, Financial Mindset, Financial Journey, Growth Mindset

What To Do When Opening Balance Doesn’t Match the Bank Statement
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Have no fear! When the opening balance does not match the bank statement, there are two common reasons: 

  1. There are previously reconciled transactions which were deleted OR 
  1. A transaction which was previously reconciled is now unreconciled 

To track down what is going on here, the following strategies may help uncover the discrepancy(ies). 
 

Easiest Fix 

  • Start your bank reconciliation. 
  • If the Beginning Balance doesn’t balance there will be an Alert: 

 

If you click, “We can help you fix it”, QB will list the transactions that were adjusted, deleted, or corrected since the last bank reconciliation.  In our example, the $100 difference was a change in an expense: 

 

When you click view, QB takes you to the Audit History so you can see who made the change and the original amount.   

 

In the Audit History, you can click to see the actual amount changes and when the changes were made.  Click the blue expense ID, to get to the transaction to correct the amount. 

 

In the transaction, click on the Online Banking Match to make sure the date and amount are correct now that you have made the change. 

 

  • Go back to the Reconciliation window. If there are more reconciled transactions that have been altered, continue with the same process for each transaction. Once your difference is zero and your beginning balance equals the balance on your bank statement, you are done and can start reconciling. 

Check for Deleted since the last Bank Reconciliation 

  • Go to Gear on Top Right > Tools > Audit Log 
  • Filter Events for Deleted/Voided Transactions 

The resulting list is a list of deleted/voided transactions. Scan the list for deleted transactions looking for $ amounts that match the discrepancy. Correct the transaction and finish reconciling. You may have to re-enter the transaction.  

Check the Bank Feed (aka Bank Transactions) 

  • Checking the Bank Feed you may find transactions from a prior period that were deleted.   
  • You may need to look at the Bank Feed > Excluded for a transaction that was deleted.  

 

For more about this topic check out our Next Blog: Crucial Steps to Insure Your Bank Account in QBO Matches Your Bank Balance 

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

Contact Us Today! 

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.