Here we will discuss how to fix beginning balance issues in QuickBooks Desktop. While reconciling the account in QuickBooks Desktop, you open the Begin Reconciliation window then it shows the Beginning Balance is zero or incorrect. This is because of the reasons:
- When setting the account, you entered no balance or an incorrect balance.
- Earlier cleared and reconciled transactions were voided, deleted, or modified.
- When the file was converted from a different version of QuickBooks.
- Likely data damage.
These are some reasons behinds the beginning balance issues in QuickBooks Desktop, now let’s proceed with the various solutions to fix the beginning balance issues. Check it out below:
- Solutions To Fix Beginning Balance Issues in QuickBooks Desktop
- Steps to correct a zero balance
- Steps to fix an incorrect balance
- Using Previous Reconciliation report
Solutions To Fix Beginning Balance Issues in QuickBooks Desktop
Steps to correct a zero balance
Recreate the opening balance
If this is your first time reconciling your account, then have an option to recreate the opening balance, keep in mind, you cannot get this option directly on the initial reconciliation window. For this, first, you have to create a journal entry and next do a mini-reconciliation to fix it.
- Here are the steps to create a journal entry by using the accurate date and amount you require to see in the Begin Reconciliation window. Go with the below steps:
- First, click on the Company menu, and next click on the Make General Journal Entries.
- Here, you need to change the date to the accurate statement date of your beginning balance.
- Look at the first line, and click on the appropriate account from the Account drop-down.
- Next, insert the correct opening balance in the Debit column.
- Later, go to the second line, and click on the Opening Balance Equity.
- Now, click on Save.
- Now, you need to do a mini-reconciliation to accurate the Beginning Balance in the Begin Reconciliation window, to do this go with the below steps:
- First, click on the Banking menu, and then click on Reconcile.
- From the Account drop-down, click on the relevant account.
- Now, insert the statement date and ending balance, make sure to enter the date that matches your Journal Entry.
- Next, click on Continue.
- Go to the Deposits and Other Credits section, and click on the corresponding Journal Entry. Note: Now, the amount shown for the Difference should be zero.
- Next, click on Reconcile Now.
Steps to fix an incorrect balance
Run any of the reports to find the transactions causing the discrepancy, check out the steps below to run the reports.
Reconcile Discrepancy report
- First, click on the Reports menu, and next click on the Banking, and then click on the Reconciliation Discrepancy.
- Click on the relevant Account, and click on OK. Now you have a list of transactions that were changed since the last reconciliation. This report is helpful to identify the transaction so use it.
- If in case you find a mistake, then write down the transaction date and the Entered/Last Modified date, that will help you to know when the change happened.
Using the Audit Trail report
- First, click on the Reports menu, and next click on Banking, then go to the Previous Reconciliation.
- Here, you need to click the relevant account being reconciled.
- Now select the most current statement date. And select the transactions that are cleared at the time of reconciliation. (now you will see the report is showing in PDF format) next, click on Display.
- Next, make a note of the statement and the reconciliation creation date.
- Now, click on the Reports menu, and next click on the Accountant & Taxes, next click on the Audit Trail.
- You need to set the Account filter to the particular account that you want to reconcile. To do this follow the below steps.
- First, go to the Customize Report.
- Next, click on the Filters tab, later, click on the Account from the filters.
- Go to the Account drop-down, and click on the appropriate account.
- Click on the Display tab. Fix the Date filter with the From field blank and the To date set to the statement date. and click on OK.
- Next, you have set the Entered/Modified 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 is showing a discrepancy in the report.
Using Previous Reconciliation report
Note: If you are a QuickBooks Desktop Pro user, then you are only allowed to access the last reconciliation report. If you want to keep a copy of the other reports, then you have saved a PDF copy on your hard drive or local drive. To learn more, read this article’s previous bank reconciliation reports. Below, check out the steps to using the previous reconciliation report.
- First, click on the Reports menu, then click on the Banking, next click on the previous Reconciliation.
- Here, choose the relevant Account and Statement Ending Date. and click on Display.
- Now, you need to compare this report to your past statements from your financial institution.
To fix the discrepancy, you might need to re-enter or edit the transactions. To solve this you can also try one of the following methods:
Undo a previous reconciliation and redo it
- First, you need to create a backup of the QuickBooks company file.
- Next, go to the Begin Reconciliation window, and click on the Undo Last Reconciliation.
- When asked, click on Continue, and next click on OK.
- Now quit and relaunch the Begin Reconciliation window.
Ignore the discrepancy and let QuickBooks enter an offsetting adjustment
However, you did not find a zero difference but click on Enter Adjustment to complete the reconciliation process. QuickBooks automatically will insert a journal entry below a special expense account called Reconciliation Descriptives. If you require then you have to review and edit it from your charts of accounts.
If you want to establish the Journal Entry, then follow the below steps:
- By utilizing the Find feature:
- First, click on the Edit menu, and next click on Find.
- Next, click on the Advanced tab, and next click on the Memo from the filters.
- Here, insert Balance Adjustment, then next click on Find. Any balance adjustment will be shown.
- By using the Previous Reconciliation report.
- First, click on the Reports menu, then next click on Banking, and then click on Previous Reconciliation.
- If in case, you already made your balance adjustment, then your General Journal Entry will display on the top of the report below the Cleared Transactions section.
Reach your bank when a banking error occurs
Contact your bank if the discrepancy is caused by a banking error that appears when you download or import transactions. For proper assistance when contacting your bank, ask for a bank representative familiar with QuickBooks Bank Feeds and account activation.
Directly reach your bank if there is a discrepancy caused by the banking error you see while downloading the transaction or while importing. For proper support, while contacting your bank, request a bank agent who is familiar with QuickBooks Bank Feeds and account activation.
Understand limitations when converting from other versions of QuickBooks
Hope, these solutions on how to fix beginning balance issues in QuickBooks Desktop will be works for you to fix zero balance and correct the incorrect balance, for more technical help you can reach out to Intuit certified ProAdvisors for instant help.