QuickBooks Reconciliation Discrepancy: Causes and Fixes
- slimyjaguaritwh
- 2 days ago
- 2 min read
Reconciling your accounts in QuickBooks is essential for ensuring your books match your bank and credit card records. But sometimes, you may run into a reconciliation discrepancy, where the numbers don’t add up correctly. This can be stressful, especially if you’ve already reconciled in the past and the differences suddenly appear.
In this guide, we’ll cover the common causes of reconciliation discrepancies in QuickBooks, how to troubleshoot them, and best practices to prevent them in the future.
What Is a Reconciliation Discrepancy?
A reconciliation discrepancy occurs when your previously reconciled balance in QuickBooks no longer matches your bank statement balance. This usually happens when transactions from prior reconciliations have been altered, deleted, or added incorrectly.
Common Causes of Reconciliation Discrepancies
Modified Transactions
A user may edit a reconciled transaction’s amount, date, or account.
Deleted Transactions
A previously reconciled check, deposit, or payment might have been deleted.
Uncleared Transactions
Transactions that were once reconciled may have been unchecked by mistake.
Incorrectly Entered Transactions
Bank fees, interest, or transfers may have been entered incorrectly, throwing off balances.
Data Damage or Corruption
In rare cases, file corruption may cause reconciled transactions to show as unreconciled.
How to Fix a Reconciliation Discrepancy in QuickBooks
Step 1: Run the Reconciliation Discrepancy Report
In QuickBooks Desktop: Go to Reports > Banking > Reconciliation Discrepancy.
In QuickBooks Online: Use the Reconciliation Report and compare it with your bank statements.
Review any transactions that have been changed since your last reconciliation.
Step 2: Run the Audit Trail Report (Desktop Only)
Go to Reports > Accountant & Taxes > Audit Trail.
This report shows who changed what and when, helping you identify altered or deleted transactions.
Step 3: Correct the Transactions
If a reconciled transaction was accidentally modified, change it back to its original amount/date.
If it was deleted, re-enter it with the correct details and mark it as reconciled.
Step 4: Re-Reconcile If Needed
Once discrepancies are corrected, you may need to redo the reconciliation for that period.
Go to Banking > Reconcile, enter the correct statement ending balance, and check off transactions again.
Step 5: Seek Accountant Help for Complex Cases
If discrepancies involve multiple periods or significant amounts, it’s best to involve your accountant.
They can make adjusting journal entries to balance your books properly.
Preventing Future Reconciliation Discrepancies
Limit access: Restrict user permissions so only authorized staff can edit reconciled transactions.
Use the Closing Date feature: In QuickBooks Desktop and Online, set a closing date with a password to prevent changes to reconciled periods.
Reconcile monthly: Regular reconciliations make it easier to spot errors early.
Review reports: Run the Reconciliation Discrepancy Report regularly to detect changes before they pile up.
Back up company files before each reconciliation.
Final Thoughts
A QuickBooks reconciliation discrepancy usually means that reconciled transactions were changed, deleted, or entered incorrectly. By running the Reconciliation Discrepancy Report, Audit Trail, and correcting errors, you can bring your books back in balance.
For ongoing issues or if the discrepancies seem too complex to fix, contact QuickBooks Support at 877-419-2575 for expert assistance in restoring your reconciliations.
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