How to Fix Reconcile Discrepancies in QuickBooks?

Reconcile Discrepancies in QuickBooks Desktop and QuickBooks Online occurs when there’s a mismatch between the bank statement balance and the QuickBooks balance during account reconciliation. Common causes include entering an incorrect ending balance, modifying or deleting already reconciled transactions, duplicate or missing entries, and unposted or uncleared banking transactions. Adjustments made through journal entries without proper documentation can also trigger discrepancies, especially when changes are made to previously reconciled data. 

To fix Reconcile Discrepancies in QuickBooks, users must review data entry properly, run reports for discrepancies, and review transaction details. Here are 6 solutions that will help you fix Reconcilation Discrepancies in QuickBooks Desktop (QBDT) and QuickBooks Online (QBO).

Solution 1: Review Your Data Entry Thoroughly

Follow these steps to review your transaction entries thoroughly and find out any discrepancies in the beginning:

• Are any transactions entered more than once?
• Do you have any unposted transactions sitting in the system?
• Have all necessary transactions been recorded?

Note: Delete any entry if any duplicate entries are spotted. Also, if you notice unposted transactions, make sure to post them correctly. 

Solution 2: Run a Reconciliation Discrepancy Report

This report highlights any transactions that are modified since your last reconciliation, helping you quickly identify what’s gone wrong. Steps to run the Reconciliation Discrepancy Report:

1. Go to the Reports menu.
2. Hover over Banking.
3. Select Reconciliation Discrepancy.
4. Choose the specific account you want to reconcile.
5. Click OK.
6. Review the report and look for any suspicious changes.
7. In case you find incorrect edits, determine why they were made. Fix only if necessary.

Solution 3: Generate a Missing Checks Report

Missing checks can cause mismatched balances during reconciliation. To identify any, you can generate a Missing Checks Report by following the steps given below:

1. Go to the Reports menu.
2. Hover over Banking.
3. Choose Missing Checks.
4. Pick the account you’re working on.
5. Click OK.
6. Review the report and compare with your bank statement.
7. Any check listed in QuickBooks but missing from your bank record should be removed from the reconciliation.

Solution 4: Run a Transaction Detail Report

Reconcile discrepancies in QuickBooks can be easily spotted by running the transaction detail reports and finding out any recent changes. Here are the steps to run the Transaction Detail Report:

1. Go to Reports > Custom Reports > Transaction Detail.
2. Click on the Display tab.
3. In the Date From field, input the earliest date available or leave it blank.
4. In the Date To field, input the date of your last reconciliation.
5. Head to the Filters tab.
6. Choose the Account to reconcile.
7. Select Entered/Last Modified.
8. Set the Date From to the last reconciliation date and Date To to the current date.
9. Click OK to generate the report.

Note: Review any changes that may have affected your reconciliation and consult with the person who made those edits, if needed. Make adjustments only when you’re sure they’re necessary.

Solution 5: Look into Reconciliation Adjustments

Reconcile discrepancies in QuickBooks can also be detected if someone made forced adjustments to make the books match during previous reconciliations. Below-mentioned are the steps to check reconciliation adjustments:

1. Go to the Lists menu.
2. Select Chart of Accounts.
3. Open the Reconciliation Discrepancies account.
4. Set the dates for the last few reconciliations.
5. Look for any forced entries or adjustments.
6. In case something seems off, consult the person responsible for the adjustment.
7. Decide whether to correct the entry or leave it as is, only after proper verification.

Solution 6: Reconcile Each Account Consistently

There are inaccurate reconciliation reports generated due to delayed reconciliation. The best way to address such discrepancies is by reconciling regularly. Follow these steps to reconcile an account in QuickBooks Desktop:

1. Go to the Banking menu.
2. Select Reconcile.
3. Pick the account you want to reconcile.
4. Enter the ending balance from your bank statement.
5. Compare the listed transactions with your bank statement.
6. In case everything matches, the reconciliation is successful.
7. In case not, investigate and adjust as needed.

What are the Prerequisites to Fix Reconcile Discrepancies in QuickBooks?

To fix reconciliation discrepancies in QuickBooks without any issues, fulfill the following requirements:

• Confirm that QuickBooks is updated to the latest version.
• Access user permissions if multiple users manage transactions.
• Gather bank statements covering the reconciliation period.
• Ensure internet connectivity for QuickBooks Online users.
• Have a backup of your QuickBooks company file.

How to Identify Discrepancies while Reconciling in QuickBooks?

Here are a few signs that will help you identify discrepancies in QBDT and QBO before encountering errors:

• Look for unexpected changes in your reconciliation history.
• Check for balance mismatches in reports versus bank records.
• Use filters to isolate recently modified entries.
• Look out for sudden, unexplained differences in reports.
• Review the audit trail for changes to past reconciliations.
• Identify missing check numbers in check sequences.
• Spot differences between statement and register balances.

How to Prevent Reconcile Discrepancies in QuickBooks?

Follow these guidelines to avoid facing reconciliation discrepancies in QuickBooks Desktop and QuickBooks Online:

• Restrict access to sensitive transactions and reconciliation tasks.
• Enable audit trail to monitor changes made by users.
• Lock prior periods once reconciled to prevent edits.
• Educate users on the impact of modifying reconciled data.
• Schedule monthly internal reviews of bank reconciliations.
• Document all adjustments with reasons and approvals.
• Maintain consistent bookkeeping practices across all accounts.

When Should You Seek Professional Help for Fixing Reconciling Discrepancies in QuickBooks Desktop and Online?

It’s a good idea to seek professional help when you’re dealing with repeated reconciliation errors, missing transactions, confusing adjustments, or changes made by other users. If you’re unsure how to undo past reconciliations or correct journal entries, getting expert support can save you from costly mistakes. Instead of guessing, let a professional step in and ensure your financials are accurate.