How To Undo A Reconciliation In QuickBooks?
Have you mistakenly entered the wrong bank statement date in QB and now need guidance on how to undo a reconciliation in QuickBooks Online? Don’t worry, stay connected with this blog to find the step-by-step instructions to resolve this problem.
What is “Undo a Reconciliation” in QuickBooks?
With additional features and functionalities, QuickBooks has become one of the most preferred accounting software, making all accounting tasks easier and more manageable. Deleting or undoing Reconciliation in QuickBooks is an exclusive feature that prevents unwanted reconciliations.
QuickBooks allows users to reconcile accounts with just a few easy clicks and saves a lot of time to do it manually. However, when the balance sheet in QuickBooks doesn’t match the bank statement, it becomes necessary to un-reconciled and remove a particular transaction from a completed reconciliation. This usually happens when you add a transaction to Reconciliation by default.
In this write-up, we have explained all the possible steps that can be performed to delete or undo a reconciliation in QuickBooks, so keep trying them out until you reach the solution.
Reasons Why You Need to Undo Reconciliation in QuickBooks Desktop!
Before moving forward, you are supposed to diagnose the reasons behind undoing or deleting Reconciliation in QuickBooks. However, it is sometimes mandatory to undo Reconciliation, especially when the QuickBooks balance sheet doesn’t match the bank statement.
Some possible factors might lead to deleting the bank reconciliation in the following situations:
- The incorrect bank statement date or not an actual date.
- There is no forced Reconciliation in the bank statements, and now it must be corrected in a definite order.
- The payment you recorded was not for an accurate date.
- Identify multiple hidden bank-related errors.
- Reconciliation helps users to indicate income modifications.
- All the transactions are appropriately checked off, and be sure that there’s no check remaining that needs to be cleared in the upcoming future.
- It also protects you from any kind of fraud done by the employees or vendors.
Pointers to Be Considered Before Undoing a Reconciliation in QuickBooks Online!
There are a few things that you need to keep in mind while undoing the Reconciliation in QuickBooks; let’s take a look at all of them:
- Ensure you have created a backup of your data file, whenever you delete or undo Reconciliation in QuickBooks.
- Avoid manually changing the Reconcile status of the transactions to prevent further errors.
- You have to remove adjustment entries if you have generated any.
- If you want to detect discrepancies in the account before going for QuickBooks Undo Reconciliation, manually fixing the cause may help you end the need to un-reconcile the accounts.
What are the Major Benefits of Undoing a Reconciliation in QuickBooks?
Reconciliation is a crucial aspect of ensuring that the accounts are accurate. There are several advantages you can avail of while doing Reconciliation in QuickBooks.
All are listed as follows:
- Reconciliation lets you search for errors in accounting and perform bookkeeping activities impeccably. You will be able to keep the bookkeeping similar to what is recorded at the bank if you reconcile accounts on a monthly basis.
- It prepares you for any further activity.
- To understand Reconciliation better, let’s take an example; just imagine you pay a check to any vendor, and they continue to delay the payment again and again; then, at this point, it may be possible that you might forget to deduct it from the account.
- Using Reconciliation, you can keep track of all the transactions you have done.
- With the help of Reconciliation, you can also keep the business deposits correct. It is found that Deposit errors are pretty much common and can have a bad effect on the business. But it helps you detect any such errors and try to correct them before they even create problems for you.
Step-by-Step Guide to Delete or Undo a Reconciliation in QuickBooks Online!
Well, the process of undoing Reconciliation may differ in both QuickBooks Desktop or Online versions.
When you try reconciling an account, you compare each transaction with the transactions entered into QuickBooks. If everything matches, you will know your accounts are balanced and accurate.
However, if you have reconciled a transaction by mistake, it is essential to individual transactions from the Reconciliation. Always keep in mind that even small changes can unbalance your accounts. Hence, you need to be extra careful when reconciling your accounts.
Let’s follow the instructions in a given order:
In QuickBooks Online Accountant Version (QBOA)
- First, navigate to the Gear icon at the top right corner of the screen.
- Now, select Reconcile, available under the Tools column.
- You need to opt for the bank account you want to Undo Reconciliation.
- After this, move your cursor over the reconciliation month you’d like to undo.
- You will be directed to the Undo button available on the right side of the Auto Adjustment column.
- Click on the Undo tab.
- Once done, the following pop-up starts appearing on your screen:
- Next, hit the OK tab, and then you will get the Success prompt on your screen as listed below:
- To finish, press OK again, and you’re good to go.
Undo Reconciliation in QuickBooks Online
- To begin with, head to Bookkeeping or Accounting and then choose the Chart of Accounts.
- Now, locate the account that has the reconciled transaction. Then, hit the View register.
- Select the transaction. However, if the transaction is reconciled, you’ll notice an “R” in the checkmark column.
- Afterward, click on the transaction to expand the view.
- Once done, hit the box with the “R” and keep clicking it until it is blank. This will delete the transaction from the Reconciliation.
- In the end, press Save and then close the Account Register.
Undo Reconciliation in QuickBooks Desktop
- To start, open QuickBooks and then directly navigate to the Banking menu.
- Herein, look for the transaction that you wish to reconcile.
- Click the Reconcile Now option.
- Finally, select the Undo Last Reconciliation option.
Manual Procedure to Reverse Reconciliation in QuickBooks
- The initial step is to hover over the Gear icon at the top of your screen and then select Chart of Accounts under Your Company column.
- Now, find the appropriate account for the transaction.
- Select History/ View Register in the Action column.
- You need to determine the transaction you want to edit.
- Navigate to the Reconcile status column indicated by the checkmark.
- At last, repeatedly click the top line of the transaction to change the status and then press Save. Choose the acronyms: C- Cleared, R- Reconciled, and Blank- Neither cleared nor reconciled.
Hopefully, the above-given information is helpful for you to get rid of this problem. But if you are still facing any kind of issues with your software and need professional assistance, regarding accounting, bookkeeping & accounting software-related issues then feel free to get in touch with us at +1-802-778-9005, or you can mail to us at: [email protected].
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Frequently Asked Question!
What Happens When you Delete a Transaction in QuickBooks?
Once you delete a transaction, it’s entirely removed from your books and won’t display in any reports or accounts. You can view some details related to deleted transactions in the audit log, but you can’t recover the whole transaction. It is important to note that you avoid deleting the transactions if you want to keep records for future requirements.
How to Avoid common Reconciliation-Related Errors?
Below we’ve listed the issues that may occur while reconciling in QuickBooks; let’s check them out one by one:
- Missed Reconciliation: Regular Reconciliation allows you to get a better insight into your finances. The longer you go for Reconciliation, the more the risk of errors increases.
- Posting a debit as a credit: The Reversal errors are one such common error which means that you posted a credit as a debit, causing you to have inaccurate books.
- Duplicate payments: Have you paid a supplier twice? This happens when new employees are brought on to a team, and you lack processes when you pay invoices.
Can I Reconcile Multiple Months in QuickBooks Desktop?
If you have multiple months or even years of un-reconciled transactions in QuickBooks Desktop with your financial statements, you can reconcile them without having to do so one month at a time. However, if your un-reconciled transactions and statements span several fiscal years, then you’re recommended to reconcile them one year at a time.
Read also > QuickBooks Tool Hub
Do You Know How to Get Previous Reconciliation Reports in QuickBooks Desktop?
In QuickBooks Desktop Premier, Accountant, and Enterprise, you can get reports for the last 120 reconciliations. Hence, you are recommended to save your reconciliation reports as PDFs or export them to Excel whenever you reconcile an account.
Here’s how you can get the past reconciliation report:
- First, navigate to the Reports menu, hover over Banking, and then choose Previous Reconciliation.
- Click on the account you want to reconcile from the Account drop-down menu.
- Now, select the reconciliation period to be reviewed under the Statement Ending Date section.
- After this, hit the Detailed or Both for the report type. It is suggested to click Detailed if you’re using the report to fix a reconciliation.
Opt for the transactions you’d like to see on the report:
- Transactions cleared at the time of Reconciliation: This gives you a snapshot that shows transactions in the account at the time of the Reconciliation.
- Transactions cleared plus any changes made to such transactions: It indicates where the transactions are currently available in your account during Reconciliation.
- Once you’re ready to run the report, click Display.