Performing a reconciliation of your Quickbooks account is necessary to identify any potential typos, errors or miscalculations. No matter hard you try to prevent it, errors are bound to happen when you are performing accounting work in Quickbooks. Thankfully, reconciling your account will identify such errors, allowing you to get your account back in order. Once you’ve identified a discrepancy, though, you’ll then need to fix it. In this post, we’re going to cover the basic steps on how to fix reconciliation discrepancies in Quickbooks.
Run a Reconciliation Report
The first step in fixing a discrepancy is to run a reconciliation report. Doing so will reveal any and all transactions from the last statement up until now that were modified. To perform a reconciliation report, click on “Reports,” “Banking” and “Reconciliation Discrepancy.” You should now have a list of all your accounts. Select the one in question to see all of the recent transaction modifications. Go over each and every transaction to identify which one is incorrect. Depending on the size of your account, this may or may not be an easy process. However, it’s imperative that you carefully analyze these transactions to identify which one is the cause of your discrepancy.
Another instance when reconciliation discrepancies occur is from missing transactions. If you or someone else overlooked a specific transaction, your entire Quickbooks account will be thrown out of order. As a result, a discrepancy will appear when you run a reconciliation report. To identify missing transactions, select “Reports,” “Banking,” “Missing Checks,” and then enter in the amount of the transaction (as shown in the discrepancy).
Modifying transactions in your account can also cause a reconciliation discrepancy. At the top navigation bar, select “Reports” and “Custom Transaction Detailed Report.” You can then modify the report to better identify which changed transaction is causing the discrepancy. Start by adjusting the start and end date according to when the discrepancy occurred. Next, select the appropriate account along with the amount and select “Run.” This will run a report for changed transactions that may have caused the discrepancy in your reconciliation.
Fixing a reconciliation discrepancy isn’t always an easy task. If you don’t know when or where the error occurred, you may have to do some digging to find it. However, following the steps listed here will help you identify and fix the discrepancy in a timely manner.