Bank Balance Errors – Fixing them in QBO
Bank Balance Errors are how I first meet a lot of my customers. They get frustrated and cannot figure out how to fix the file. They want to continue to reconcile it, but they can't. This post and accompanying video below will walk you through the process. There are lots of ways the beginning bank balance can be off. See this other post for a quick fix when a transaction simply becomes unreconciled.
Bonus tip: Are you reconciling? You should be. Even though the figures come from the bank, you must reconcile to verify them.
Bank Balance Errors: What happened?
As the video demonstrates, bank balance errors can happen a few ways:
- You see a transaction that is mis-posted and you make a correction to it, which causes it to no longer be reconciled.
- You find a transaction that is completely wrong and you delete it and recreate it.
How to fix it....
There are a couple of ways of making the repair to bank balance errors in QuickBooks Online (QBO). If the original transaction is in place, but became un-reconciled because you changed something on it, then you can simply click the blank box to make it show an "R" for reconciled. Or, as demonstrated in the video, un-click the "R" to make it not reconciled anymore.
Sometimes the reconciled transaction was completely deleted. You need to open the audit log screen and see what happened. I like to click to see "all changes" so I can be sure to see exactly what was originally there and what was deleted. I can determine what may need to be reinstated. Part of the process in cleaning up a file is to use the advanced search box to be sure I am not re-entering a transaction that is already in place in the file.
If it is a payment on a credit card, there are generally two banks involved in one transaction. That is the tricky part. Be sure to look in the bank account's register to make sure the transaction is not already entered. This is key to the process of fixing these types of issues.
Once re-entered or located, click the "R" to re-reconcile and make the beginning balance what it was when you last performed a reconciliation.
Other tips and places to look for errors....
The other housekeeping tips I can share is to view the balance sheet. Look for anything that is called uncategorized. You want to make sure these accounts are not used. Every transaction should have a category. Uncategorized anything is a bank feed default account that is used when the person entering the transactions does not post to an account on the Chart of Accounts. Look for balances in opening balance equity account. That account should have a zero balance once any opening balances have been entered.
Last piece of advice: Don't let bank balance errors bring you down....
It is something we specialize at here at Artesani Bookkeeping. If you cannot figure it out, it may be best to hire a professional to clean it up. How many hours will you spend fixing it or pulling your hair out? You can hire an expert and leave the QuickBooks clean up to us!
If you have any questions or would like to see a future video on another topic, please reach out to me on Facebook.