When you have reconciled certain transactions in QuickBooks, the beginning balance may not seem accurate. This can happen when errors have been encountered in the reconciliation process.
Wrong or incorrect values entered during reconciliation can show the opening balance to not be zero or correct. With the help of the Account History in Chart of Accounts, QuickBooks users can fix or change the opening or beginning balance. This option should especially be known to learn how to change the beginning balance when reconciling in QuickBooks Online. Apart from this, reports like Audit Trail Report and Reconcile Discrepancy Report can be used for changing this balance in QuickBooks Desktop.
You can quickly navigate to a version-specific method to change the beginning balance when reconciling in QuickBooks.
- How to Change Beginning Balance When Reconciling in QuickBooks?
- Method 1: Change Reconciled Beginning Balance via Account History
- Method 2: Make the Opening Balance from Scratch
- How Do I Change Beginning Balance while Reconciling in QuickBooks Online?
- Can You Change Beginning Balance in QuickBooks Desktop When Reconciling?
How to Change Beginning Balance When Reconciling in QuickBooks?
In QB, the Chart of Account carries the Account History option. It lets you filter the reconciled transactions. Then you can choose one transaction that is affecting the beginning balance and make edits to it. To change this balance during the reconciliation, you can also recreate it. A fresh journal entry can be prepared to fix the opening balance issue. In the end, you can check that in QuickBooks, the reconciled beginning balance is zero.
For finding out more information about the two methods, please see further.
Method 1: Change Reconciled Beginning Balance via Account History
Using Account History, you can change the reconciled beginning balance in QB. To access this option, you can visit Accounting. Look for the Chart of Accounts. Using this, view Action. This is where Account History will be available. Using the symbol of Filter, you can obtain the transactions that are forming the reconciled beginning balance. Please decide which transaction is the reason behind initiating the change in the beginning balance. Then using Account History, make the necessary changes.
To understand more about how to change beginning balance when reconciling in QuickBooks, please scroll below:
- Select “Accounting” in “QuickBooks”.
- Now, visit “Chart of Accounts”.
- View the column named “Action”.
- Tap on “Account History”.
- Press the icon of “Filter”.
Pro Tip: To easily locate the icon of “Filter”, you will be suggested to view the left corner at the top in the accounting software.
- Ensure that you can see “Reconciled Status”.
- Below this status, click on “Reconciled”.
- Push the “Apply” button.
Note for Readers: The information associated with your transactions will be available. These transactions will be the same as the ones that are a part of the reconciliation beginning balance.
- Decide which transaction’s beginning balance has to be edited or changed.
- Open “Account History” one more time.
- Then make the changes to the beginning balance in QuickBooks.
Pro Tip: It can be helpful to learn that this accounting software comprises a feature that lets you add your accountant. You can invite him or her via “Find a Pro to Help”. To view this feature, you will have to visit the tab for “My Accountant”.
Method 2: Make the Opening Balance from Scratch
At the time of reconciling in QB, when the beginning balance gets affected, you can recreate it. As opposed to finding the error made during the reconciliation process and then fixing it, this one can be a convenient approach.
- First, let us prepare a journal entry via the window of “Reconciliation”. To access it, select “Company” in “QuickBooks”.
- Find “Make General Journal Entries”. Choose the option.
Pro Tip: To learn how you can make a journal entry in QuickBooks Online and QuickBooks Desktop, you can refer to our post. We have covered the methods to do so in more detail.
- Mention the following information associated with the opening balance:
- Date relating to the opening balance
- The correct amount of this balance
- Press “Save”.
- For fixing/correcting the wrong beginning balance, select “Banking”.
- Choose “Reconcile”.
- Click on the dropdown labeled as “Account”.
- Using the dropdown, an account can be selected.
- Mention the date of the statement.
- Provide the ending balance.
Note for Readers: In Steps 9 and 10, the information provided should match with the journal entry.
- Select “Continue”.
- Navigate to “Deposits and Other Credits”.
- Tap on the “Journal Entry” option.
- See to it that in “Difference”, the amount visible is “Zero” or “0”.
- Now, push the button stating “Reconcile Now”.
How Do I Change Beginning Balance while Reconciling in QuickBooks Online?
On finding a discrepancy in the reconciled beginning balance in QBO, you can first confirm it. You can choose the View Register feature in the Chart of Accounts. Here, you can find the entry related to the opening/beginning balance. Confirm whether the entry contains an error or if the balance is completely incorrect. You will have to access your bank account too via its website. The account will help you in matching the balances. Afterward, you can select Deposit in QuickBooks Online and make the edits when the balances mismatch.
Below, this method for QuickBooks Online to reconcile the beginning balance when it is wrong has been discussed in more length:
Note for Readers: The following method will be of use when old transactions have been added in QBO. Also, the date of these transactions needs to be earlier than that of the opening balance.
- Open the menu for “Accounting”.
- Tap on “Chart of Accounts”.
- View your account from the list.
- Click on “View Register”.
- Find the entry for the opening balance.
- In “Account”, ensure that this balance comprises “Opening Balance Equity”.
- Using your “Browser”, open the website of your bank.
- Log in to your account on the website.
- Look for the bank statement.
- See the balance of the account and ensure that it is correct.
Note for Readers: The balance of the account needs to be checked for the day of the opening balance.
- Both the balances have to be compared in this step.
Note for Readers: When the balances are the same, you can be sure that the beginning balance need not be changed. You may not perform the steps any further. In case of a mismatch in QuickBooks Online, the reconciled beginning balance will be incorrect. Please continue with the steps mentioned as follows:
- Switch to “QBO”.
- Find the entry for the opening balance.
Pro Tip: It will be helpful to keep the view expanded when you have found the entry for the opening balance. Doing so will quickly help you in making the changes.
- Select “Deposit”.
- Make changes/edits to the beginning balance.
Pro Tip: While editing the beginning balance in the reconciled transactions, some of you may mistakenly delete them. We can help you know how to fix the deleted reconciled transactions in QuickBooks Online.
- Ensure that after the edits, the beginning balance correctly matches your bank transactions.
- Press “Save”.
Note for Readers: Should you like to check the changes made to the opening balance when reconciling in QuickBooks Online, head to “Accounting”. Use “Chart of Accounts”. Then click on the “View Register” option. In the register, you can check the changes.
Can You Change Beginning Balance in QuickBooks Desktop When Reconciling?
QBDT or QuickBooks Desktop enables you to change the opening balance while reconciling when it is incorrect. There are two main things that have to be done for this purpose. Initially, you need to open a report. You can prefer opening the Previous Reconciliation Report, Audit Trail Report, or Reconcile Discrepancy Report. After opening it, you can undo, as well as redo, the previous reconciliation. By doing so, the beginning balance will get corrected.
Let us see more about these steps associated with how to change the beginning balance when reconciling in QuickBooks Desktop:
Step 1: Open a Report in QBDT to Look for Wrong Balance
Only when the beginning balance has been checked by you, changes can be made to it as per the need. So, step 1 of this method is about opening a report to check the beginning balance. You can open the Previous Reconciliation Report from the Reports menu. To access the Audit Trail Report, you can take the help of the Banking tab in Reports. For running the Reconcile Discrepancy Report, the same tab can be used.
In the following options, the detailed ways to open these reports have been given.
Option 1: Running Previous Reconciliation Report
In the Desktop version of QuickBooks, to reconcile the beginning balance if wrong, you can use the Previous Reconciliation Report. It can be located by selecting Reports. Then choose Banking to continue. Later, pick an account for fetching the desired report.
Note for Readers: You may be using a version of QBDT like QuickBooks Desktop Pro. In this version, only the report for the last reconciliation is available.
- View the menu for “Reports”.
- Head to “Banking”.
- Use “Previous Reconciliation” to continue.
- Click on an account.
- Select “Statement Ending Date”.
- Tap on “Display”.
- Start the comparison of the report with your past financial statements.
Option 2: Use Audit Trail Report
For changing the opening balance in QuickBooks Desktop, the Audit Trail Report can be run. In the menu for Reports, you will see Banking. Select it and then opt for Previous Reconciliation. Select your reconciled account. Then add the statement’s latest date. Gradually, you can reach Accountant & Taxes to find the Audit Trail Report.
- In “QBDT”, visit “Reports”.
- Opt for “Banking”.
- “Previous Reconciliation” needs to be selected.
- Choose the account which has been reconciled.
- Mention the latest date of the statement.
- Click on “Transactions Cleared at the Time of Reconciliations (Report is Displayed as a PDF File)”.
- Now, opt for “Display”.
- Make a note of your statement.
- Also, note the date on which the reconciliation was made.
- Perform step 1 again.
- “Accountant & Taxes” needs to be opened.
- Choose “Audit Trail”.
- Use the filter for “Account”.
- Click on “Customize Report”.
- Visit the tab for “Filters”.
- Tap on “Account”.
- Now, choose the dropdown for “Account”.
- Click on your account.
- Select “Display”.
- In “Date”, fill in the “From” and “To” fields for the date of the statement.
- Push “Ok”.
- In “From”, tap on “Entered/Modified”
- The date for making the previous reconciliation has to be set.
- In “To”, mention the present date.
- Check if the transaction is carrying any discrepancies or is incorrect.
Option 3: Opening Reconcile Discrepancy Report
In order to use the Reconcile Discrepancy Report for fixing or editing the beginning Balance in QBDT, you can select Reports. After this, head to the tab for Banking. Make your selection for Reconciliation Discrepancy. Based on which account you choose, the report will be made available. After this, you can make the edits to the opening or beginning balance.
- Select the menu named “Reports”.
- Push the “Banking” tab.
- Choose “Reconciliation Discrepancy”.
- Opt for an account as per your choice.
- Tap on “Ok”.
- Go through the transactions in the list made since you last reconciled.
- Find the following information and make a note of it:
- Date of transaction
- Date for the last modification of the transaction
Step 2: Undo and Redo Previous Reconciliation
In Step 2 of this method, we will show you how the selected QBDT report can be used for editing the beginning balance. Ensure that a backup of your QuickBooks Desktop’s company files exists. Then enter Begin Reconciliation. Using this window, you need to tap on Undo Last Reconciliation. After this, hit the Continue option. When the changes have been made, you can leave this window in QuickBooks Desktop.
- Initially, back up your company files in QuickBooks.
- Visit the window that says “Begin Reconciliation”.
- Opt for “Undo Last Reconciliation” from the window.
- Press “Continue”.
- Select “Ok”.
- Exit the window and then open it one more time.
- Now, you can check the changes.
Note for Readers: As opposed to performing the steps listed above, you can also enable QBDT to use offsetting adjustment. You can choose “Enter Adjustment”. Then a journal entry will be made by the accounting software in “Reconciliation Discrepancies”. Via “Chart of Accounts”, any changes needed can be made.
This explains how in this version of QuickBooks, you can reconcile the opening balance if wrongly added.
Taking Everything into Account
At the time of reconciling your transactions in QuickBooks, errors may be made in inserting the values. Since they can affect the opening or beginning balance, it can be important to make the edits. Taking this into account, we shared with you the methods to change the beginning balance. As you saw, these methods were suitable for QuickBooks, QuickBooks Online, and QuickBooks Desktop users. Thus, many of you would be able to get rid of the opening balance problem in the software.
To read more, we will recommend our post on how to record deposits in QuickBooks. Along with this, the readers can also go through our blog on how to print an old reconciliation report in QuickBooks.