Beginning Balance “Off” In QuickBooks Reconciliation Screen

“What do I do if my beginning balance is off when I start to reconcile my account in QuickBooks?”

First, let’s start with what that means. It means a reconciled transaction has been deleted. Even if you have re-entered the transaction after deleting it, QuickBooks recognizes this as a new transaction which means it will not be considered reconciled.

If you do not know which transaction was deleted QuickBooks has a report to help you find it. In the Desktop version of QuickBooks this is located within the first screen when starting to reconcile, it is the button labeled “Locate Discrepancies”. From there choose “Discrepancy Report” and any transactions that have been deleted or unreconciled since the last reconciliation will be on listed on the report.

Once you have identified the transactions affecting the beginning balance you will need to determine if they have been re-entered or need re-entered. Once those transactions are properly recorded you will be ready to begin your reconciliation, but your beginning balance will still be off.

Most users feel at this point that they should undo the previous reconciliation and start over but this is not necessary and just creates more work. Rather than undoing the previous reconciliation I suggest you change the Statement Date to the date of the previous reconciliation enter the Ending Balance of that statement date, then click Continue. Once you are in the screen with the Checks and Deposits you will see the transactions that were listed on the discrepancy report (provided you have re-entered those transactions). Check mark those as you normally do and this should bring you to a reconciled balance (Difference $0.00). You will then be ready to start the reconciliation for the month you were going to do when you realized the beginning balance was “off” and now the beginning balance will be correct!

Rhonda H Smith
Your QuickBooks Coach