What to Do If Beginning Balance Doesn’t Match in QuickBooks?

by Devil Devis Certified Public Accountant

You might end up with issues such as beginning balance issues in QuickBooks desktop when performing the reconciliation process. You might see the beginning balance as zero or incorrect when you open the begin reconciliation window and move for an account to reconcile. This issue usually appears when you have zero credit or the wrong balance entered in setting up the tab. And the other reason this occurs is if the previously cleared or reconciled transactions are void, deleted, and modified.

If there is any data damage, you might also come up with this error. One more reason can be if the file was converted from a different version of QuickBooks.

Don’t worry; we have the solutions for you to fix beginning balance issues in QuickBooks Desktop. Keep reading,

Answers in the form of steps are given below:

1- Recreate the opening balance

To correct a zero balance, you would have to recreate the opening balance. If you are reconciling the account for the first time, then try to play the opening balance, but this solution is not present in the beginning reconciliation Window. Moreover, you can create a journal entry and then perform a mini reconciliation to mend it.

Step 1: At the first, before beginning, you have to create a journal entry using the correct date and amount that you would like to see in the begin reconciliation window:

Go to the company menu and select the make general journal entries.
Further, change the date to the correct statement for the beginning balance date.

Correct statement date Image

Select the proper account from the Account drop-down.
Press Enter in the appropriate opening balance in the debit column.
Choose opening balance equity.
Pick the save tab.

Step 2: Perform a mini reconciliation to correct the beginning balance in the beginning reconciliation window:

Pick the bank menu and move to the reconcile tab at the initial step.
Select the proper account from the drop-down menu.
Now fill in the statement date and ending balance that tally with your journal entry.
Done with this, so now select the continue tab.
Now, choose the corresponding journal entry in the deposits and other credits section.
Also, see that the amount shown for the difference should now be zero.
Finally, End this process by selecting reconcile tab.

Reconcile now Image

Steps for fixing an incorrect balance

Mend edited, deleted, or cleared transactions

Banking and reconciliation discrepancy Image

To find the transactions causing the discrepancy, you have to run any of these reports:

Step 1: Reconcile discrepancy report

Under this, you would have to see the reports menu and choose banking and reconciliation discrepancy.
In the second stage, you have to pick the appropriate account and choose the OK tab. The list of transactions appears before you that were changed since the last reconciliation. And you are suggested to use this report to spot the transaction triggering the issue.
If you spot a discrepancy, put a note of the date of the transactions and then enter the modified date, making you know about the change.

Step 2: Audit trail report

Audit trail report Image

Hereunder this step, you are supposed to go to the reports menu and choose the banking and previous reconciliation tab.
Now pick the account that is to reconcile.
Pick the most recent statement date. Select the transactions cleared at the time of reconciliation and tap the display tab.
Take a note of the statement and the reconciliation creation date.
Further, select the reports menu and select accountant and taxes or the audit trail report.
Set the account filter to the account that is being reconciled.
Select the customize report tab.
Now head to the filters tab and pick the account from the filters.
Select the required account. And move to the Display tab and set the date filter with the form field blank and the date assigned to the statement date.
Select the OK tab.
Set the entered filter from the date set to the prior reconciliation creation date from the PDF and then To field as today’s date.
Now, look if any of the transactions in the report account for the issue.

Step 3: Previous reconciliation report

Previous reconciliation report Image

It should stated that if you are using QuickBooks desktop pro, you will only be able to access the last reconciliation report. To keep a copy of other accounts, you are suggested to save a PDF copy on the hard drive and view earlier bank reconciliation reports to learn more.

First, move to the reports menu and pick banking and previous reconciliation.
Now select the appropriate account and statement ending date. Pick the display tab.
Then compare this report to past messages from the financial institution.

You will have to re-enter or edit the transaction to mend the issue.

Step 4: Undo a previous reconciliation and redo it

For the backup, the QuickBooks company files are needed.
Select undo the last reconciliation in the begin reconciliation window.

Undo last reconciliation Image

When asked to, select the continue tab and press the OK button.
Finally, close and reopen the beginning reconciliation window.

Step 5: Avoid the discrepancy and let QuickBooks enter an offsetting adjustment

Even if you didn’t get a zero difference, select the enter adjustment tab to complete the reconciliation process. The QuickBooks software will automatically enter a journal entry under a particular expense account, known as reconciliation discrepancies. Further, view and edit it as suggested by going to the chart of accounts:

To locate the journal entry,

Use the find feature.

Select the Edit menu and pick the find tab.
Move to the advanced tab and choose the memo from the filters.
Further type balance adjustment and then select find tab.

Look at the previous reconciliation report:

Now pick the banking tab and then earlier reconciliation by heading to the report’s menu.
If you made the balance adjustment, you would look for a journal entry at the top of the report below the cleared transactions section.

Step 6: Reach out to the bank about a banking error

You can reach out to the bank if the discrepancy is caused due to a banking error that pops up at the time of downloading or importing transactions. For more help when reaching out to your bank, ask for a bank representative familiar with QuickBooks bank feeds or account activation.

I hope this article might help in fixing beginning balance issues in QuickBooks desktop. But still, if you have any questions, then don’t hesitate while discussing them with us. Contact our QuickBooks desktop support team at 1-800-615-2347 limited any time.