You might encounter a number of challenges and barriers in the form of error codes and bugs while using the QuickBooks Desktop accounting software. Beginning balance issues in QuickBooks are one such error that you should fix as soon as it occurs on your system. Here you will read about how to fix your beginning balance on the QuickBooks desktop and if you want to know more about QuickBooks topics like what is the difference between VAT vs GST and create and email an invoice in QuickBooks mobile app then click on these links.
When performing the reconciliation process on QuickBooks desktop, you might encounter beginning balance issues. You might discover the beginning balance to be zero or incorrect when you open the begin reconciliation window and select an account to reconcile. This problem occurs when the account is first set up and either no balance is entered or the balance is entered incorrectly. Likewise, if any previously reconciled and cleared transactions were nullified, changed, or deleted.
If there is any sort of data damage or the file was converted from a different version of QuickBooks, you might also experience this error. Read on if you want to learn how to fix this problem. For more information, please call us.
Fixing beginning balance issues in QuickBooks desktop
Steps for correcting a zero balance
Recreate the opening balance
You would need to recreate the opening balance in order to correct a zero balance. If you are reconciling the account for the first time, just in case, try to recreate the opening balance, but this option is not available in the window that opens when you start the reconciliation. Additionally, you can correct it by making a journal entry and then doing a quick reconciliation.
Step 1. To start the reconciliation process, you would need to first create a journal entry with the accurate date and amount:
- Select the make general journal entries option from the company menu.
- Additionally, change the date to the beginning balance’s correct statement date.
- From the account drop-down menu, select the appropriate account.
- In the debit column, enter the appropriate opening balance.
- Select the opening balance equity option in the second line.
- Choose the “Save” tab.
Step 2: Perform a mini reconciliation to correct the beginning balance in the begin reconciliation window:
- Select the bank menu, then click the reconcile tab.
- From the drop-down menu, select the appropriate account.
- Enter the statement’s starting balance and date so that they match your journal entry.
- Select the next tab.
- Select the corresponding journal entry in the deposits and other credits section.
- Also, take note that the difference amount displayed should now equal zero.
- By choosing the reconcile now tab, the procedure will end.
Steps for fixing an incorrect balance
Step 1: Reconcile discrepancy report
- You would then need to check the reports menu and choose the banking and reconciliation discrepancy option under this.
- Select the OK tab after selecting the appropriate account. A list of the transactions that have changed since the last reconciliation will be available to you. Additionally, it is advised that you use this report to identify the transaction that caused the problem.
- Keep a record of the transaction date and the entered modified date so you can determine when the change occurred if you notice a discrepancy.
Step 2: Audit trail report
- You are required to proceed to the reports menu and select the banking and previous reconciliation tab from the list below.
- Select the required account for reconciliation.
- Additionally, select the most recent statement date. Select the display tab and then select the transactions that were cleared at the time of reconciliation.
- Make a note of the creation dates for both the statement and the reconciliation.
- Additionally, select the reports menu and then the accountant, taxes, and audit trail reports.
- The account that is being reconciled should be selected as the account filter.
- Select the tab for customizing reports.
- then select the account from the filters by going to the filters tab.
- Choose the required account.
- After that, switch to the display tab and set the date filter to the statement date with the field left empty.
- Tap the OK tab.
- Set the entered filter so that the to the field is today’s date and the from date is the previous reconciliation’s creation date as taken from the PDF.
- Verify if any of the reported transactions relate to the problem.
Step 3: Previous reconciliation report
It should be noted that you can only access the most recent reconciliation report if you are using QuickBooks Desktop Pro. Save a PDF copy of other reports to your hard drive so you can keep a copy of them. To find out more, view earlier bank reconciliation reports.
- Select Banking and Previous Reconciliation from the reports menu.
- A suitable account and statement ending date should be selected. Go to the display tab.
- Additionally, contrast this report with previous financial institution statements.
Step 4: Undo a previous reconciliation and redo it
- Back up your QuickBooks company file for this.
- In the begin reconciliation window, select undo last reconciliation.
- When prompted, select the Continue tab and press the OK button.
- Reopen the reconciliation window after closing it.
Step 5: Avoid the discrepancy and let QuickBooks enter an offsetting adjustment
To finish the reconciliation process even if you didn’t get a zero difference, select the enter adjustment tab. A journal entry will be made automatically by the QuickBooks software under a unique expense account called “reconciliation discrepancies.” Go to the chart of accounts to check it again and make any necessary edits:
The journal entry can be found here.
- Utilize the finding tool
- Choose the find tab from the edit menu.
- Select the memo from the filters on the advanced tab.
- Type “balance adjustment” again, and then click the Find tab. Any balance change will be visible on the screen.
View the most recent reconciliation report here:
- By selecting the banking tab under the reports menu, followed by the previous reconciliation.
- You can find a general journal entry at the top of the report in the cleared transactions section if the balance adjustment was made.
Step 6: Reach out to the bank about a banking error
If the discrepancy is brought on by the banking error that appears when downloading or importing transactions, you can contact the bank. Ask for a bank representative who is familiar with QuickBooks bank feeds and account activation when contacting your bank for additional help.
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