An organized office desk with a laptop displaying a QuickBooks reconciliation page, highlighting financial transactions and discrepancies. The desk also has a calculator, financial reports, and pens, conveying a professional atmosphere focused on financial management and accuracy. Fix The Beginning Balance Discrepancy. Fix The Opening Balance Discrepancies

How To Fix The Beginning Balance Discrepancy in QBO Reconciliation

When reconciling bank or credit card accounts in QuickBooks online, you might sometimes need to fix the beginning balance alert. It indicates that your account isn’t ready to reconcile.

This alert usually means that something has changed about your cleared transactions since your last reconciliation.

Here’s a step-by-step guide to help you understand and correct these discrepancies.

These could be due to changes in transaction amounts, unintentional edits, or even deleted transactions.

Why You Might See a Beginning Balance Alert

A beginning balance alert means that something has changed with your previously cleared transactions.

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Common issues include:

  • Changes in transaction amounts after they were reconciled.
  • Transactions being unreconciled by mistake.
  • Transactions being cleared directly in the register without proper reconciliation.
  • Transactions being deleted.
  • Multiple changes occurring on a transaction.

How to Correct Your Beginning Balance Discrepancies

If you encounter a fix the beginning balance alert, follow these steps to identify and correct the problem:

Source

1. Start by Viewing the Discrepancy Report

  • Go to Transactions from the side menu and select Reconcile.
  • If there’s a problem with your beginning balance, an alert will appear.
  • Click on the alert link to view the Discrepancy Report.
  • Use the Change Type column in the report to see what changed.

2. Common Change Types and How to Fix Them

a. Amount Changed

  • This indicates that someone altered the dollar amount of a reconciled transaction.
  • To fix this, select the transaction and adjust the Amount back to match the Reconciled Amount.
  • For certain transaction types, you may need to click Edit to modify the amount.
  • Click Save once done.

b. Unreconciled in Register

  • This occurs when a transaction was reconciled and then unreconciled, often accidentally.
  • To fix this, select the transaction and click the checkmark box until an R (for reconciled) appears.
  • Click Save—the transaction should then disappear from the discrepancy report.

c. Reconciled in Register

  • This happens when someone manually clears a transaction without properly reconciling it.
  • To correct it, select the transaction and click the checkmark box until it’s blank or shows a C (cleared).
  • Click Save to un-clear the transaction so it can be properly reconciled in the future.

d. Deleted Transactions

  • If a transaction shows up as Deleted, it means it was removed after being reconciled.
  • Click View to see the transaction’s history and details.
  • If deleted by mistake, recreate the transaction exactly as it appeared before.
  • Select New, choose the type of transaction, and fill out the form with the correct details (amount, date, etc.).
  • Click Save and Close, then reconcile the recreated transaction by selecting it in the Chart of Accounts, clicking the checkmark box until you see an R, and then saving.

3. Handling Transactions with Multiple Changes

  • If a transaction has multiple changes, click View to see the most recent version and what has been altered.
  • Look for any highlighted areas that indicate changes and revert them to their original state.
  • If the changes are extensive or you prefer to start fresh, you can undo the entire reconciliation. Ask your accountant to log in, go to the History by Account screen, and undo the last reconciliation.

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4. Consulting Your Accountant

If managing these corrections feels overwhelming, your accountant can be a valuable resource.

They can access your QuickBooks account, review reconciliation history, and undo or adjust reconciliations as needed.

Final Tips

  • If this is your first reconciliation and you’re having trouble with the beginning balance, you might need to adjust your beginning balance journal entry. Look for guidance specific to that scenario.
  • Always double-check your transactions during the reconciliation process to avoid unnecessary alerts in the future.
  • If you haven’t added your accountant to your QuickBooks account, invite them to help manage these tasks effectively.

Following these steps to fix the beginning balance issue, you can complete a smooth and accurate reconciliation process in QuickBooks online.

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