Find reconciliation errors

If you signed up to try a new way to reconcile in QuickBooks Labs, you're in the right place. If you didn't, click here to learn about finding reconciliation errors with the current QuickBooks reconciliation.

Of course it's important to balance your books exactly with your account statement but sometimes during a reconciliation, it can be difficult to get that difference to equal zero. Here are some possibilities that experts look for when they're hunting down possible errors:

1. Make sure the statement information you entered at the beginning of the reconciliation is correct.
2. QuickBooks tallies the number of cleared (selected) transactions for each transaction type. (Bank accounts have payments and deposits. Credit cards have charges and payments.) Make sure QuickBooks has the same number for each of these transaction types as the statement.
   1. If it's just one transaction you're looking for, the amount of the difference at the top of the Reconcile window might be the same as the transaction you're looking for. You can use the filter to search for that amount.
   2. If the statement number is higher than the QuickBooks number, that means there aren't enough transactions selected in QuickBooks. Look for:
   • A transaction that wasn't marked as cleared (given a checkmark)
   • A transaction that wasn't entered in QuickBooks
   • A deposit that was entered as a payment or a payment as a deposit
   • A charge that was entered as a payment or a payment as a charge
   • A transaction that is dated after the statement end date.

   By default, QuickBooks uses the filter to hide these transactions with a filter setting called, Statement end date. To see these transactions, you can click this filter setting's X to turn it off.

   3. If the statement number is lower than the QuickBooks number, that means there are too many transactions selected. Look for:

      • A transaction that was mistakenly marked as cleared

      • A transaction that was entered twice in QuickBooks
      • A deposit that was entered as a payment or a payment as a deposit
      • A charge that was entered as a payment or a payment as a charge
3. If you're sure you cleared the right number of transactions, check the amounts of the transactions against the amounts on your bank or credit card statement. If an amount doesn't match, click the transaction to correct it.
4. If you can't find errors or omissions in your QuickBooks records, the problem may be the result of a bank error. Handle errors on your bank or credit card statement.
5. If the difference is small, or if you can't find what's causing the difference, we recommend that you ask your accountant to help you find the error or tell you if the difference is small enough to adjust.
6. If your accountant is okay with it, after you click Finish Now, you can click Add adjustment. QuickBooks creates a transaction to adjust for the difference in the register of the account you're reconciling and assigns it to the Opening Balance Equity account.

See also

Reconciliation overview

Reconcile a bank, credit card, or petty cash account

Find beginning balance discrepancies before reconciling

Fix beginning balance discrepancies before reconciling