You might end up in beginning balance issues in QuickBooks desktop, when performing the reconciliation process. When you open the begin reconciliation window and go for an account to reconcile, at that time you might see the beginning balance to be zero or incorrect. This issue is seen if there is no balance or incorrect balance being entered when setting up the account. Or if previously cleared and reconciled transactions were void, deleted or modified.
You might end up in such an error also if there is any sort of data damage or if the file was converted from a different version of QuickBooks. If you want to correct this issue, keep reading further. Or call us for further queries.
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Fixing beginning balance issues in QuickBooks desktop
Following are the advanced steps to resolve beginning balance issues in QuickBooks desktop:
Steps for correcting a zero balance
Recreate the opening balance
To correct a zero balance, you would have to recreate the opening balance. Just in case if you are reconciling the account for the first time, then try to recreate the opening balance, but this option is not present in the begin reconciliation Window. Moreover, you can create a journal entry and then perform a mini reconciliation to mend it.
Step 1: You would first have to create a journal entry using the correct date and amount that you would like to see in the begin reconciliation window:
- Move to the company menu and pick the make general journal entries.
- Further change the date to the correct statement date of the beginning balance.
- Choose the proper account from the account drop down.
- Enter in the appropriate opening balance in the debit column.
- In the second line, choose opening balance equity.
- Pick the save tab.
Step 2: Perform a mini reconciliation to correct the beginning balance in the begin reconciliation window:
- Pick the bank menu and go for the reconcile tab therein.
- Choose the proper account from the drop-down menu.
- Fill in the statement date and ending balance that tally with your journal entry.
- Pick the continue tab.
- Now, in the deposits and other credits section, pick the corresponding journal entry.
- Also, note that the amount shown for the difference should now be zero.
- End the process by selecting reconcile now tab.
Also Read: How to Fix QuickBooks Unrecoverable Error?
Steps for fixing an incorrect balance
Mend edited, deleted, or cleared transactions
To find the transactions causing the discrepancy, you need to run any of these reports:
Step 1: Reconcile discrepancy report
- Under this you would have to check the reports menu and select banking and reconciliation discrepancy.
- Pick the appropriate account and choose OK tab. You will have a list of transactions that were changes since the last reconciliation. And you are recommended to use this report to spot the transaction triggering the issue.
- In case you spot a discrepancy, keep a note of the transactions date and the entered modified date which will let you know when the change took place.
Step 2: Audit trail report
- Hereunder, you are supposed to move to the reports menu and choose banking and previous reconciliation tab.
- Pick the needed account that is to be reconciled.
- And pick the most recent statement date. Choose the transactions cleared at the time of reconciliation and choose display tab.
- Take a note of the statement and the reconciliation creation date.
- Further, choose the reports menu and select accountant and taxes and also the audit trail report.
- Set the account filter to the account that is being reconciled.
- Choose the customize report tab.
- And head to the filters tab and pick the account from the filters.
- Select the needed account.
- And move to the display tab and set the date filter with the from field blank and the date set to the statement date.
- Pick OK tab.
- Set the entered filter with the from date set to the previous reconciliation creation date from the PDF, and the To field as today’s date.
- Check if any of the transactions in the report account for the issue.
Step 3: Previous reconciliation report
It should be noted that if you are using QuickBooks desktop pro, then you will only be able to access the last reconciliation report. For keeping a copy of other reports, you are recommended to save a PDF copy on the hard drive. Check view previous bank reconciliation reports to learn more.
- Move to the reports menu and pick banking and previous reconciliation.
- Choose the appropriate account and statement ending date. Pick display tab.
- And compare this report to past statements from the financial institution.
For mending the issue, you will have to re-enter or edit the transaction.
Step 4: Undo a previous reconciliation and redo it
- For this backup the QuickBooks company file.
- Choose undo last reconciliation in the begin reconciliation window.
- When asked to, choose continue tab and hit OK button.
- Close and reopen the begin reconciliation window.
Step 5: Avoid the discrepancy and let QuickBooks enter an offsetting adjustment
Even if you didn’t get a zero difference, pick the enter adjustment tab to complete the reconciliation process. QuickBooks software will automatically enter a journal entry under a special expense account termed as reconciliation discrepancies. Further check and edit it as required by going to the chart of accounts:
In order to locate the journal entry,
- Use the find feature
- Choose the edit menu and pick find tab.
- Move to the advanced tab and pick the memo from the filters.
- Further type balance adjustment and then choose find tab. Any balance adjustment will be seen on the screen.
- View the previous reconciliation report:
- By heading to the reports menu and pick the banking tab and then previous reconciliation.
- In case the balance adjustment was made, you will see a general journal entry at the top of the report under the cleared transactions section.
Step 6: Reach out to bank about a banking error
You can reach out to the bank if the discrepancy is caused by the banking error that appears when downloading or importing transactions. For further assistance when reaching out your bank, ask for a bank representative familiar with QuickBooks bank feeds and account activation.
This segment might work for you in fixing beginning balance issues in QuickBooks. As always, if you have any questions, comments, or concerns, get in touch with our support executives.
We are a hub of QuickBooks desktop support team who work round the clock to provide the best possible support services. So, do not hesitate in calling us anytime and seeking for assistance!